Chinese Protest Losses Tied to U.S. Reverse Mergers

Aug. 19 (Bloomberg) -- Bloomberg's Margaret Conley reports from Xi'an, China, on mainland investors who are protesting after losing their life savings on investments in companies aiming for listings in the U.S. At least 16 firms based in Xi’an, the capital of Shaanxi province in the nation’s northwest, joined more than 400 Chinese businesses that gained stock-market listings in North America by buying public shell companies, a strategy known as a reverse merger that avoids the scrutiny of an initial public offering. (Source: Bloomberg)