there are over 100 chinese corp listed on US exchanges as ADR with at least level 2 regs. there are over 160 Chinese corp that trade OTC on US exchanges (less reg scrutiny) focusing on only Alibaba (Ant), Tencent (WeChat) & Ping An, the three main giant chinese fintech firms. former is ADR level 3 so “highest” level of scrutiny, the other two are OTC. let’s focus on Alibaba/Ant. they have a domestic depositary bank for the ADRs, a big 4 for the audited financials, and sell side analysts that cover the stock (from main i-banks). given Alibaba is “controlled” by the CCP, how effective is the oversight here, either statutory (SEC, auditors) or market (analysts, depository bank)? for example, would a sell side analyst refrain from asking pointed question for fear of her form being singled out by the CCP as a result? crux of the argument is, how much trust can be put in the financial numbers reported by Chinese firms trading as ADRs? …see more