The Perilous Job of Auditing China

Sometimes Auditors Have to Flee for Their Lives

Who should be most afraid of auditing in China – a US examiner, the Chinese regulators or the companies being audited? Pick those doing the examining. For all of the accounting profession’s image as a dull and boring occupation, in China it isn’t. Sometimes it can be downright dangerous.

You can find the entire column here.

Big Brother Meets Big Data

The Security Assault on Social Networks

Forget hacking. It works but it’s illegal.

Big data mining is the future of cyber espionage. It is not illegal as long as the data is open source and in the public domain. And all that data on “open” social networking Web sites are most vulnerable.

Two recent commercially developed software packages could soon be giving your government and employer and possibly anyone else who is interested – ways to spy on you like never before, including monitoring your words, your movements and even your plans now and into the future.

Please read the full column here and there.

The Genesis of Hong Kong´s Company Law Fuss

The Companies Ordinance review has been years in the making

A recent hotly debated topic in Hong Kong relates to the government’s attempt to rewrite the Companies Ordinance, spurred largely by the sudden public realization that the resulting new Companies Bill was already passed in the local legislature without much media attention and the rude awakening to the subsequent impacts.

Much of the current media focus and public debates have been placed on only one aspect of the many proposed changes: to withhold from the public parts of the identification numbers and details of the residential addresses of company directors found in the Hong Kong company registration records.

The lightning rod for public concern has struck many a wrong cord, including outcries about the suppression of transparency and apprehension over possible government submission to China’s will.

This column looks at the roots of the situation and puts the fuss in perspective.

Please read full article here.

Fund Losses Spark Fury

(NOTE: This is one of my many investigative exposés on commercial crimes during my newsroom days. It bagged the Society of Publishers in Asia (SOPA) award for Excellence in Business Reporting in 2005. Somehow the link to the story is not working so I am pasting the entire script below. I also penned a follow-up piece under a different byline following the Lehman Brothers mini-bonds scandal – you can find it here.)

The Standard

By Vanson Soo 2004-11-01

Fund losses spark fury

There is never a shortage of bad investments _ or people eager to sell them to you. From Internet come-ons to “boiler rooms” in Bangkok, investors are bombarded with a steady stream of supposedly low-risk, high-return deals.

What is not so common is an investment scheme making similar claims marketed by one of the United Kingdom’s biggest financial institutions carrying what many investors took to be the implicit approval of reputable banks on three continents.

More than 7,000 Hong Kong investors, many of them affluent professionals and small businessmen, invested in one such product, the Offshore With Profits (OWP) funds sold by Clerical Medical Insurance (CMI), a subsidiary of Halifax-Bank of Scotland, one of the UK’s biggest mortgage lenders. Hong Kong was the place where a significant amount of sales for a fund that totalled about US$3.5 billion at its peak _ it is now about half that size _ took place with investors here typically investing more than US$100,000 each.

Although CMI says it does not have complete data, available information suggests that Hong Kong investors alone put more than US$700 million in the funds. Most now wish they had not. That is especially true of those who borrowed up to three times their initial investment to buy extra shares in the fund, only to see its asset value dive. At stake is whether or not they were misled by the sales pitch _ and whether Hong Kong regulators will conduct a thorough investigation into what is shaping up as one of the biggest losses in Hong Kong fund history.

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