Ambow Education escapes from liquidation and could resume trading soon

[avunculus]

a Chinese company faced fraud accusation (mentioned in Robert Zangrilli's short article on SA) and has been halted for more than a year. Their previous auditor was PwC, who resigned during the crisis. Ambow's provisional liquidators hired DLA Pipa to come up with a clean report. looks like: 1.even investing in a "clean" small Chinese company has substantial risk; 2. an independent lawyer's report (taking a year to complete) is far more important than what an auditor says and does. not sure whether it is relevant to the NQ case.

related links:

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001104659-14-039725.txt&FilePath=\2014\05\16\&CoName=AMBOW+EDUCATION+HOLDING+LTD.&FormType=6-K&RcvdDate=5%2F16%2F2014&pdf=

http://edu.qq.com/a/20140401/018234.htm (in Chinese)

[maplell2002]

Thanks for this. I think it also tells us when PwC delay or resign, it doesn't always mean the company is fraud.

[avunculus]

yeah, the auditors are just count-potatos. they can't tell whether a company is a fraud or not after all their work is done. the lawyers have much more weight.

Thanks for this. I think it also tells us when PwC delay or resign, it doesn't always mean the company is fraud.