As always, fraud will exist in every country and not just China. Often we are oblivious to Western fraud because it is in our faces all the time. Eastern fraud is new and under greater scrutiny.
Management have travelled to the factories and so have the auditors. Fraud is harder after weariness from so much experience of fraudulent activities. Not to mention that the Chinese are zealously guarding their prestige.
Nevertheless, until dividends are in hand, we will remain skeptical.
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