5 Small-Cap Chinese Companies Paying Dividends

The year 2011 was not a productive time period for investors in small-cap Chinese companies that trade on the domestic U.S. exchanges. Over this timeframe, the United States appeared to be under attack by an onslaught of fraudulence found in the recently-listed Chinese companies that had gained access to the US markets via a backdoor process known as a reverse merger. Revealed practices of falsified filings, poor auditing standards, and deceitful management became ever prevalent occurrences. To date, most small-cap Chinese companies that continue to trade on the on US exchanges appear to have a generalized discount to their share prices in regards to this incident. Barring the large state-backed enterprises and those deemed too large to be susceptible, most Chinese companies continue to dwell at levels far below what can be considered a fair valuation. American Lorain (ALN) trades with a price-to-book (p/b) ratio of 0.35 despite a trailing... Read more