China stocks or S-Chips are really losing integrity big time as this latest cancellation (New Century Shipbuilding) shows that many china stocks are hiding important materials from IPOs and their P&L statements would show huge deteriorations within 2 years of listings.
Many china companies cook their books during IPOs to raise funds from the stock market and they would be suspended and delisted when they have cashflow problems leaving minority shareholders in a dry high situation.
I think it's time we realized that we've to take a pinch of salt from those S-chips and avoid them at all cost as sifting through the good ones are not really worth the effort as we don't know the veracities of their accounts.
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