As China continues to be one of the most attractive investment regions in the world, many investors are discovering that not every Chinese company is what it appears to be. While there are clearly many success stories involving investment in China, the number of stories of people getting burned on their investments is also quickly adding up.
Simply put, do not believe everything you read. Some Chinese companies use the physical distance between themselves and their foreign investors to shield themselves from scrutiny. This leads to some Chinese companies making exaggerated claims in the belief that it will be too difficult for foreigners to verify these statements. As a responsible investor/business, it is your obligation to follow up on the claims of any company whose products or stock you are considering purchasing.
Channel Checks on Chinese Companies
Wusen Group International will help you verify the claims of Chinese companies you are interested in investing in. We are on the ground in China and can easily visit any city where your potential investment target sells its products. Acting as a bridge between you and China, we can help you get a clear picture of what is really happening in the Chinese market.
We will give you a better idea of the validity of a company's claims by:
Visiting retail outlets in domestic markets where a given Chinese company claims its products are sold.
Conducting interviews with people who have experience with the company and/or its products.
Identifying competitors of a given company who might be a better investment.
Reporting back to you with a professional summary that details our findings.
Trust is of the utmost importance when conducting due diligence, especially in China. Wusen Group International, adheres to a strict company policy of confidentiality and ethical behavior.
Confidentiality: You are looking for an advantage, and we want you to preserve your edge over the competition. We keep all of your information private.
Ethics: Wusen Group International wants to provide you with clean information that you can feel legally and morally confident about using. Our company policy follows the guidance of former commissioner of the SEC Paul Atkins:
"Insider trading basically comes down to where you know or ought to know that the person from whom you're getting this information has a duty to someone else to keep it confidential. If you go in and pay the mail clerk to give you special information, that's not proper." - Paul Atkins Under no circumstances will Wusen Group International engage in any behavior that runs counter to the definition above. All information we collect on your behalf is obtained without compromising anyone's legal or moral obligations to another party.
To learn more about the necessity of performing due diligence in China, and how using channel checks can help you, please read over the following articles.