There’s been a cloud of anxiety building over certain Chinese companies listed on North American exchanges, with allegations that some of them are overstating their finances. Matters reached a climax in August, when the Ontario Securities Commission suspended the TSX-listed shares of Sino Forest, which has forestry operations in the world’s most populous country. Or so we thought.
Familiar sounding claims soon arrived at the doorstep of Vancouver-based Silvercorp, alleging among other things, that the grades at one of its Chinese mines were simply too good to be true. Matthew Hill and Martin Zhuwakinyu discuss the developments.