The inherent risks behind Chinese ADRs

RYB Education’s child abuse scandal is a textbook example of the inherent legal risks that investors face when owning US-listed Chinese equities.

The inherent risks behind Chinese ADRs

The directors of RYB Education rang the opening bell cheerfully as the share price of the Chinese preschool education firm shot up by 40% on its debut on the New York Stock Exchange in late September.

Two months later the firm was in the spotlight again. This time around, though, none of the company's managers are likely to have welcomed the public exposure.

In what was described as the...

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