People like to complain about the shady criminal activity going on in the U.S. markets. However, the U.S. markets are regulated as well as any country in the world. Let’s take a look at an example of what happens in China.
Fraud is much more blatant in under-developed capital markets. Often times businesses just change their ‘business’ to whatever is hot at the moment. Take for example this Chinese ADR Nam Tai Property.
In 2014, after the China Real Estate market became the hottest on the planet, these guys changed their business from consumer electronics to property management. Nearly 40 years into the electronics business, they ‘pivoted’.
Man…you just never know what people try to put past you.
Be safe out there in the wild west that is global capital markets.