Friday, April 29, 2011

Trading China's Fraud / Corporate Governance Risk Model

I appreciate the work Rames from the website Trading China does regarding US-listed China stocks.

The latest tool he contibuted to his models is a Fraud/Corporate Governance Risk Model.

The model is based on about 20 different metrics, but it is NOT meant to be the ultimate truth.

Here are the results for about 100 Chinese stocks Rames already researched:
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 HIGH SAFETY 
 --------------------------------------------------- 
 CTRP Ctrip.com International         120% 
 VISN VisionChina Media               107% 
 XIN Xinyuan Real Estate               99% 
 AMBO Ambow Education Holding          96% 
 CNTF China TechFaith Wireless         95% 
 --------------------------------------------------- 
 MODERATE SAFETY 
 --------------------------------------------------- 
 DANG China Dangdang                  89% 
 AOB American Oriental Bioengineering 87% 
 YOKU Youku.com                       80% 
 HOGS Zhongpin                        80% 
 CIIC China Infrastructure Investment 75% 
 --------------------------------------------------- 
 MODERATE RISK 
 --------------------------------------------------- 
 CHRM Charm Communications            73% 
 YONG Yongye International            72% 
 CPSL China Precision Steel           70% 
 CCCL China Ceramics                  68% 
 CAST ChinaCast Education             64% 
 CHLN China Housing and Land Dev      63% 
 CNIT China Information Technology    62% 
 CSGH China Sun Group                 60% 
 CHOP China Gerui Advanced Materials  60% 
 CBAK China BAK Battery               59% 
 SKBI Skystar Bio-Pharmaceutical      58% 
 GSI General Steel Holdings           58% 
 AKRK Asia Cork                       57% 
 XNY China Xiniya Fashion             56% 
 WATG Wonder Auto Technology          56% 
 LIWA Lihua International             56% 
 EMDY Emerald Dairy                   56% 
 CIHD Changda International           56% 
 CTFO China TransInfo Technology      55% 
 ADY Feihe International              55% 
 XNYH Xinyinhai Technology            54% 
 SCEI Sino Clean Energy               54% 
 HPJ Highpower International          54% 
 GHNA GHN Agrispan Holding            54% 
 CCGY China Clean Energy              52% 
 CBPO China Biologic Products         51% 
 BEST Shiner International            50% 
 --------------------------------------------------- 
 HIGH RISK 
 --------------------------------------------------- 
 FSIN Fushi Copperweld                48% 
 CPQQ China Power Equipment           47% 
 CGYV China Energy Recovery           47% 
 FEED Agfeed Industries               46% 
 CHGI China Carbon Graphite           46% 
 AMCF Andatee China Marine Fuel       45% 
 WKBT Weikang Bio-Technology          44% 
 SPU SkyPeople Fruit Juice            44% 
 GFRE Gulf Resources                  44% 
 LNDT LianDi Clean Technology         43% 
 SOKF SOKO Fitness and Spa            42% 
 SIAF Sino Agro Food                  42% 
 EESC Eastern Environment Solutions   42% 
 CRUI China RuiTai International      42% 
 CRJI China Runji Cement              42% 
 CFSG China Fire and Security         42% 
 CAAS China Automotive Systems        42% 
 ALN American Lorain                  42% 
 GCHT GC China Turbine                41% 
 CFMI China Pharmaceuticals           41% 
 BEER Tsingyuan Brewery               41% 
 GHII Gold Horse International        40% 
 CXDC China XD Plastics               40% 
 CWS China Wind Systems               40% 
 SNBP Sinobiopharma                   39% 
 ONP Orient Paper                     39% 
 CNYD China Yida Holding              39% 
 BORN China New Borun                 39% 
 TRIT Tri-Tech Holding                38% 
 LPH Longwei Petroleum                38% 
 CNET ChinaNet Online                 38% 
 BWOW Wowjoint Holdings               38% 
 HFGB Huifeng Bio-Pharma              37% 
 CHHE China Health Industries         36% 
 SGTI Shengtai Pharmaceutical         34% 
 KNDI Kandi Technologies              34% 
 CNAM China Armco Metals              34% 
 LLEN L and L Energy                  33% 
 CSKI China Sky One Medical           33% 
 CADC China ACM                       33% 
 CBEH China Integrated Energy         32% 
 CMFO China Marine Food               31% 
 --------------------------------------------------- 
 EXTREME RISK 
 --------------------------------------------------- 
 ZSTN ZST Digital Networks            30% 
 VALV Shengkai Innovations            30% 
 ORS Orsus Xelent Technologies        30% 
 CHBT China-Biotics                   30% 
 CBP China Botanic Pharmaceutical     30% 
 CGA China Green Agriculture          29% 
 KGJI Kingold Jewelry                 28% 
 CSOL China Solar and Clean Energy    28% 
 SCOK SinoCoking Coal                 27% 
 PUDA Puda Coal                       27% 
 DGW Duoyuan Global Water             27% 
 CHGY China Energy Corporation        27% 
 NEP China North East Petroleum       24% 
 CEU China Education Alliance         24% 
 BSPM Biostar Pharmaceuticals         24% 
 HRBN Harbin Electric                 22% 
 LTUS Lotus Pharmaceuticals           21% 
 CHNC China Infrastructure Construction 21% 
 ABAT Advanced Battery Technology     17% 
 JGBO Jiangbo Pharmaceuticals         16% 
 CGPI China Redstone Group            16% 
 CELM China Electric Motors           13% 
 NEWN New Energy Systems              12% 
 CAGC China Agritech                   7% 
 CHNG China Natural Gas                5% 
 TSTC Telestone Technologies           2% 
 CCME China MediaExpress               2% 
 SBAY Subaye                           1% 
 UTA Universal Travel Group            0%

For more information about his model(s) you can visit Trading China

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