Chinese companies are deciding whether to go public on U.S. stock exchanges, which would be the first such move since 2011. Alibaba Group Holding is thought to be preparing an initial public offering that would be valued in the billions of dollars and is evaluating whether to launch its offering in New York, Hong Kong or elsewhere, sources say. Four other firms reportedly are seriously looking at a U.S. IPO.
The Securities and Exchange Commission will have to overcome hurdles as it refocuses attention on accounting fraud, according to this article. Uncovering accounting fraud requires digging through years of statements and demands more resources compared with other types of investigation. Accounting standards can be vague and thus give companies enough cover to claim they acted in good faith. This article argues that the SEC must proceed, despite these challenges, to catch the next Enron-like scandal before it blows up in the market.