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How well are your favorite companies being run? How can you tell? For a look into how a company is run, corporate governance policies can be a great guide.

These policies mitigate the conflict of interest between shareholders (who wish to maximize the firm's value) and management (who wish to maximize personal wealth). Institutional Shareholder Services (NYSE:ISS) gives different companies ratings in four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

Companies with stronger corporate governance policies are viewed as safer investments to shareholders over the long term.

We ran a screen on US-traded stocks of companies based in China for those with the lowest corporate governance rankings (highest risk) from ISS.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies are in trouble? Use this list as a starting point for your own analysis.

List sorted by market cap.

1. Sohu.com Inc. (NASDAQ:SOHU): Engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Market cap of $2.13B. According to ISS, the company has 'low concern' in the Audit Risk category, 'high concern' in the Board Risk category, 'medium concern' in the Compensation Risk category, and 'high concern' in the Shareholder Rights Risk category. Might be undervalued at current levels, with a PEG ratio at 0.75, and P/FCF ratio at 9.83. The stock has had a couple of great days, gaining 13.63% over the last week.

2. AsiaInfo-Linkage,Inc. (NASDAQ:ASIA): Provides telecommunications software solutions and information technology products and services to telecommunications carriers and other enterprises in the People's Republic of China. Market cap of $572.64M. According to ISS, the company has 'low concern' in the Audit Risk category, 'high concern' in the Board Risk category, 'medium concern' in the Compensation Risk category, and 'medium concern' in the Shareholder Rights Risk category. Might be undervalued at current levels, with a PEG ratio at 0.86, and P/FCF ratio at 7.58. The stock is a short squeeze candidate, with a short float at 21.84% (equivalent to 11.49 days of average volume). The stock has lost 58.84% over the last year.

3. Zhongpin, Inc. (NASDAQ:HOGS): Engages in the processing and distribution of meat and food products primarily in the People's Republic of China. Market cap of $393.38M. According to ISS, the company has 'low concern' in the Audit Risk category, 'medium concern' in the Board Risk category, 'medium concern' in the Compensation Risk category, and 'low concern' in the Shareholder Rights Risk category. The stock is a short squeeze candidate, with a short float at 12.31% (equivalent to 12.94 days of average volume). The stock has had a good month, gaining 14.73%.

4. Fushi Copperweld, Inc. (NASDAQ:FSIN): Develops, designs, manufactures, markets, and distributes bimetallic wire products, principally copper-clad aluminum and copper-clad steel. Market cap of $315.15M. According to ISS, the company has 'low concern' in the Audit Risk category, 'medium concern' in the Board Risk category, 'high concern' in the Compensation Risk category, and 'low concern' in the Shareholder Rights Risk category. The stock is a short squeeze candidate, with a short float at 27.74% (equivalent to 14.82 days of average volume). The stock has had a good month, gaining 16.53%.

*ISS ratings sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 4 Chinese Companies With The Highest Corporate Governance Risk