August 23, 2013

Many people around the world have gone wild about riding the Chinese economic boom and stock market. There is an important reason for that. China is the fastest growing economy in the world, expected to surpass the United States´ economy over the next few years. Chinese manufacturing industry already exceeded the U.S. and became the largest in the world in 2010. Even though there has been a slow down on the economy’s growth in the past 2 years, experts say this indicates it is a solid healthy economy that is just cleaning up the financial system, not a bubble like some skeptics have forecasted. The small actions taken by the government are targeted to achieve a more sustainable growth, and there are simply too many Chinese to fail. With so many mouths to feed, and so many people with purchasing power, China will grow. For those looking to do business in China, verifying companies is now big business to avoid fraud.

Although China is still a communist country, its free market policies have encouraged a large amount of foreign investment. The odds are that Chinese companies will continue to do very well. With no fears of a "hard landing" for China's economy, the outlook seems perfectly fit for investing. However, the investors’ concerns should be less focused on the economy and more focused on the Chinese companies themselves. The economic boom has also brought into the picture a lot of fraudsters. China background checks and China due diligence is helping those who want to get into China's markets, do so safely and with lower fraud risk.

People have lost their money to “Coal companies” that didn´t even own a coal mine, to oil companies that didn´t deliver any oil, and so on. Recently, an investigation on Chinese investment scams showed that 70 companies that had been listed in the U.S. stock market were taken out because they were inexistent or fraudulent. Fake companies, one after the other, have managed to get listed on Nasdaq and the New York Stock Exchange. So if the stock market gets fooled, how do you avoid being a victim yourself? A company verification will provide you with reliable information not only about the ownership and the legal registration, but also about the operations of this business and the reputation it holds in other countries, including China.

Investment scams have duped retail investors when they try to buy electronics and commodities at prices so low that they become irresistible. Before investing in a Chinese company, be sure to find out how it operates and whether it is likely that its corporate executives will act in the best interest of its shareholders. Before buying any goods you would also need a screening of the seller. A professional investigator can help you verify the legal registration, ownership, legal filings, reputation and operations, and to screen the case for fraud before investing!

S. Birch
© 2013 S. Birch

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This copyrighted article was written and published by the editor and site author, S. Birch, or other guest private investigator, expert or contributor as stated.

1 comment:

  1. It is good to see the information about the investigation of companies for their verification in china and the boost of Chinese business in the world, thanks for the valuable information.
    Joseph Levinson