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Benjamin Wey: A China Expert’s Views on Understanding SAIC and SEC Filing Discrepancies
Benjamin Wey: A China Expert’s Views on Understanding SAIC and SEC Filing Discrepancies
Benjamin Wey, the president of New York Global Group and the visiting professor of finance to many reputed universities worldwide has expresses his views on understanding SAIC and SEC filing discrepancies for US- listed, China-based companies.
New York ,
New York ,
United States
(pr4links.com)
24/12/2010
ew York, NY, Oct 27, 2010- Benjamin Wey expressed his expert views on understanding SAIC and SEC filing discrepancies for U.S. listed China based companies. In recent time, some investors interested in investing in US-listed, China-based companies have expressed concerns over discrepancies found in the financial statements between SAIC and their U.S. SEC filings. Some investors immediately rush to the conclusion that the underlying China operating entities must be fraudulent in inflating sales and earnings figures, and that their public SEC filings in the U.S. may not be reliable.
But, Mr. Benjamin Wey expresses his views that the matter would be highly concerning for investors if SAIC filings did match a public company's SEC filings. The reason is that there are over 50 million registered businesses in China. China's State Administration for Industry and Commerce ("SAIC") has no authority in overseeing the financials of a business in China. So, it would be incorrect to refer to SAIC filings as a Chinese company's "tax authority" and make accompanying accusations regarding tax evasion or use them as a measure of judgment on a company's financial status.
For a Chinese company, a "Certificate of Tax Completion" is all that is needed to satisfy a company's tax and annual financial filing requirements. State Administration of Taxation ("SAT") is the only Chinese government agency that receives annual financial reports of a business and that has the legal authority to collect corporate taxes. All of the US-listed, China-based companies are under holding company structures that own multiple subsidiaries in China. Unlike the SEC, the SAT and SAIC do not require a holding company to file consolidated financial statements.
If a company is a holding company that owns multiple subsidiaries or factories that are not all located in the same physical location, then each subsidiary has to file its own tax returns separately with a local tax bureau where the subsidiary is located. And all of a holding company's subsidiaries are consolidated into one financial statement. So, simply adding up the financials of each subsidiary does not equate to the financials filed by the holding company, represented as an entire organization through its SEC filings.
About Benjamin Wey:
Mr. Benjamin Wey is the President and founding partner of New York Global Group. NYGG is a leading Wall Street middle market advisory firm on China related transactions. With headquarters in both New York and Beijing, NYGG has more than 80 experienced and expert professionals. Benjamin Wey and his NYGG have been advising China based corporate clients with their strategic growth in the past 16 years.
Contact Address:
New York Global Group
The Trump Building
40 Wall Street
New York, NY 10005
USA
Tel: 212-566-0499
About
Benjamin Wey is the current president of New York Global Group (NYGG), a venture investment, international investment banking, and strategic consulting firm with headquarters in Beijing and New York City. Benjamin Wey possesses extensive international business experience, broad contacts and in-depth cultural familiarity as an expert on China.
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