Category: Money tips Release Date: 2006-02-21
"OTCBB different from the OTC, not the Nasdaq, domestic enterprises listed overseas, there are scam shell. Through the shell on the OTCBB is not easy to achieve the purpose of financing, domestic enterprises is best to avoid it." Well-known scholars, Professor Lang told the Daily News reporter in an interview. This reporter has learned, in the current one and a half in the stock market, there are some bad companies and intermediary agencies to use the public's blind worship of foreign markets, especially in the OTCBB market, the concept of big means for misappropriating public.
OCTBB is an opportunity there are traps
In recent years, the domestic economy's robust growth has bred a large number of enterprises, especially private SMEs, they are eager to obtain public financing. But because a higher threshold for small and medium board markets, and a large number of companies waiting to line up some strength not meet listing requirements of the domestic small and medium enterprises also need financing, turning to overseas.
According to industry sources, domestic firms on the Nasdaq IPO of up-front cost of about 150 million dollars, and that success is no guarantee, while the OTCBB listing through a reverse acquisition of the success rate was higher, and the total cost of around 50-90 million range, so that this market has become the choice of many domestic small and medium enterprises. However, in OTCBB market, has become a number of enterprises to domestic investors, the company boasted an important means for misappropriating the prospects for big gimmick.
This reporter has learned, Fujian, an advocate of illegal intermediaries to domestic investors and a company to be listed overseas Northeast, saying that once the overseas listing of the success of 4.1 yuan per share, investors will become the company's stock five U.S. dollars per share, return staggering. 1 Zhang capital into those accounts to the illicit brokering of more than 80,000 yuan, and bought 2 million shares. However, he received a stake in managed card marked only the number of holdings, but there is no purchase price, repurchase agreement, nor did it indicate the price of buying. Currently, Mr. Zhang day worried that if the company can not be listed for insurance at the end of the repurchase agreements became empty words, their own retirement, never to return also has. In fact, Mr. Zhang encountered situation in many parts of the country staged Among them, in Shaanxi, Sichuan, Fujian and other places staggering.
In fact, OTCBB is not "America's Nasdaq," and, in the OTCBB market in the NASDAQ-listed so far from glory.
As of last weekend, there are 86 domestic SMEs in the OTCBB market, after China, Sinovac has three music sources, Bodisen, Tiens International, TSTC, the steam system, etc. 6 companies from the market OCTBB National Stock Exchange rose to another BAK Battery, the steam system and Shenzhen Comtech and other three companies rose to the Nasdaq board.
Last week, statistics from the press view of the circumstances, in that 86 Chinese companies in the OTCBB market, the stock is higher than four U.S. dollars only Greater China Holdings, China's Qing Tong and Shenzhen Tai-ray and so 14, accounting for 16.3% of the total, but also l plate that is in accordance with standards, the only 14 liters board's share price reached a threshold. Price range between 1-3 there are 16 U.S. dollars, accounting for 18.6% of the total. The United States shares the concept of junk stocks lower one U.S. dollars, but this proportion is in the 86 companies accounted for 60.5%, reaching 52; 0.1 U.S. dollars stock in companies with less 11, accounting for 1.37%.
Industry experts point out that the data can be seen from the above, the vast majority in the United States through the OTCBB-listed shares of Chinese companies as junk stocks, most of them did not meet its original purpose of financing, domestic investors to be careful to judge the investment value of such companies, and the right the name of the concept of selling shares of listed overseas companies to remain vigilant.
Beware of black-hearted corporate intermediaries and black heart
Head of the New York International Capital Corporation Wei Tian-yi said that a lot of adverse domestic intermediary organizations and companies listed overseas through the guise of cheating investors, in fact some time before these companies often will "vanished", the real success of the very few listed. In this regard, her view, domestic enterprises should strengthen the understanding of the U.S. capital markets, to understand the risk of a shell to verify the qualifications of intermediaries, and to look for compliance and legal intermediary agencies, which try to prevent being scammed from happening.
At present, an increasing number of domestic private enterprises see overseas financing of hope, they entertain great hopes for the U.S. capital markets. However, Chinese enterprises, especially private enterprises, generally the U.S. capital markets are more familiar with and does not speak English, lack of professionals. General bad intermediaries tend to over-promise and low prices to attract business, which greatly hampered the RTO industry's sustained and healthy development. She told reporters, in order to avoid fraud, protect the interests of enterprises and investors, the United States Securities and Exchange Commission (SEC) at the National Association of Securities Dealers (NASD) Web site (http://pdpi.nasdr.com/PDPI/) published All through the SEC registration of securities with a qualified name of the company and its formation, place of registration, business scope, the number of states in the United States to be registered (if not registered in the state do not allow the state to promote its stock) and other relevant information for investors to check the authenticity.
The Black intermediaries have been able to become very popular, partly because some businesses were taken in does not rule out some companies are conscious and poor co-operation means for misappropriating intermediaries. Financial Economics at Yale University, Professor of Economics and Management School of Tsinghua University Distinguished Professor Chen Zhiwu In an interview with newspaper reporters pointed out that as a semi-market investors, a major source of fraud, a lot of adverse domestic intermediary organizations and companies through overseas listing a cover to deceive investors, and investors to trade in illegal networks, from the hands of individuals and institutions to purchase non-listed companies, shares, securities investment consulting for accepting an illegal act are not subject to existing laws and regulations of protection. The event of disputes, the interests of investors will not be guaranteed, so he suggested that domestic investors should be listed overseas to raise capital through the OTCBB acts to maintain a high degree of vigilance and calm state of mind, and not to be moved by promises of high returns bait.
Link
OTCBB Profile
U.S. OTCBB (Over the Counter Bulletin Board) that the OTCBB is a able to provide real-time stock prices and trading volume of electronic quotation system, opened in 1990, mainly to facilitate trade and to strengthen the OTC market transparency. As the OTCBB is a brokerage NASDAQ National Association of Managers (NASD) management, OTCBB stocks by market makers (Market Makers) to conduct through the NASDAQ Workstation offer, they were the same as some people wrongly treat him NASDAQ market. In fact, OTCBB neither the Nasdaq market, nor is it a part of the NASDAQ, or the so-called Nasdaq deputy board.
