A $4.4 Billion Accounting Error Burns Investors in China
We recall talking to a China energy expert one time in Washington DC. He lamented that it was very hard to get a handle on Chinese carbon emissions as the numbers in China were either made up to satisfy crony masters or just didn’t exist. “Accounting” in China is very suspect.
One of China’s largest listed drugmakers said it overstated cash holdings by $4.4 billion, sending its shares and bonds tumbling and heightening concerns about the quality of accounting in a country that has become a fast-growing part of global investment portfolios.
Kangmei Pharmaceutical Co., a producer of traditional Chinese medicines, said in a filing on Tuesday that an accounting “error” led to the overstatement of its 2017 cash position.