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 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 worst child abuse scandal in Chinese history, RYB Education was investigated by the Beijing authorities after a number of parents reported that their children were being drugged, molested, and fed with unidentified pills at one...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222