Dutch Trader

UTVG.OB Makes Impressive Gains Online

Chinese stocks are low for a reason. Most of them are hold by insiders so real influence of outside investors on business is limited. Also these stocks are thinly traded, causing difficulty to buy and sell. That is why institutional investors or mutual funds don't pay a lot of attention to this kind of stocks.

Another reason is that accounting rules in China are different than in the U.S. or Europe. Those companies have historically not adopted our management and financial reporting concepts and practises, which includes strong corporate governance, internal controls and, database, financial and other control systems.