The Hong Kong Researcher Pointing Out Red Flags at Chinese Firms
- GMT Research uses screening tool to monitor firms’ accounting
- Company drew attention with June report on footwear makers
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Earlier this year, Royal Bank of Canada’s Asia equities team ran the numbers for Chinese sportswear firm Hosa International Ltd. through a third-party screening tool. They decided not to invest.
“It had theoretically great metrics,” said Mayur Nallamala, head of Asian equities at RBC’s asset management unit. But “after we ran it through the filter we said ‘No’.”