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In the recent Barron's article titled "Who's Minding the Minders of Chinese Accounting?", a total of 7 Chinese companies (including 4 C.O.P. companies) were singled out for having auditors that had, one way or another, raised a red flag with the PCAOB (Public Company Accounting Oversight Board). These companies were:

1) American Dairy (NYSE:ADY)
2) China Precision Steel (NASDAQ:CPSL)
3) China BAK Battery (NASDAQ:CBAK)
4) China Clean Energy (CCGY.OB)
5) China Kangtai Cactus (CKGT.OB)
6) China Sky One Medical (CSKI.OB)
7) China Education Alliance (CEUA.OB)

Five of the above companies rely on external IR firms for their investors relations, and of these, four share the same IR firm. The firm that appears to have close relationships with dubious auditors is CCG, headed by Crocker Coulson. It serves CPSL, CCGY, CSKI and CEUA. ADY employs ICR and the other two have no outside help for IR.