Comment: Muddy Waters! Sand bars & snags unseen.

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Muddy Waters! Sand bars & snags unseen.

Excerpts from your linked article:

"Probably all these companies have some questionable accounting, so they may prefer to move out of the U.S., not to come under too much scrutiny," said Marc Faber, managing director of his Hong Kong fund management.

A financial firm, Muddy Waters Research, accused Focus Media last year of overstating the number of its display panels and questioned acquisitions reported by the company. Focus Media denied the allegations and said independent auditors confirmed the size of its network. This week, Muddy Waters founder Carson Block said in a statement: "The markets are far better off if a few deep pocketed investors own Focus Media instead of mutual funds and other public shareholders."

Washington wants auditors to hand over documentation on companies that are under investigation but Chinese authorities have barred the release of some information. If a settlement is not reached, the SEC could reject audits by China-based firms, forcing companies to find new auditors.

Major state companies such as oil giant PetroChina Ltd. and China Mobile Ltd., the world's biggest phone company by subscribers, also have issued shares abroad. None has indicated it plans to withdraw from foreign stock exchanges.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul