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PRINTBeijing securities regulators are refusing to help U.S. counterparts investigate fraud charges against U.S.-listed Chinese firms.
It appears to be dawning on officials at the U.S. Securities and Exchange Commission (SEC) that cooperative, cross-border financial investigations are completely foreign to China.
Washington's regulators have been trying since late 2010 to gather information that could help them probe fraud allegations involving so-called Chinese concept stocks listed on American exchanges.
U.S. investors were burned after buying concept stocks, which hundreds of Chinese companies have floated in recent years through reverse-mergers that legally sidestepped SEC disclosure rules.
Short-sellers, whistleblowers, skeptical shareholders and others have claimed, especially since last year, that concept-stock companies cheated investors by, for example, faking financial reports.
In many cases, SEC launched the investigations after share values plummeted. But investigators often hit impenetrable rock in China while digging for concept-stock company financial data because their Chinese counterparts refused to cooperate.
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