Scam Chinese companies listed on AIM

EdGasket

Today a third (that I know of) Chinese company listed on the LSE AIM market has been suspended and unlikely to come back. CAMK has been added to the list of NBU and CTEK (and ACE looks like another) , all of which have trended inexorably down since IPO. All have turned out to be pretty much companies in name only and only listed to allow Chinese to launder money out of China. We are NOT talking here of someone making a cold call and selling dodgy shares, we are talking about companies 'regulated' by the LSE with UK nominated advisors and brokers, listed on the London stock exchange. NBU and CAMK were also recommended by the Investor's Chronicle in Simon Thomson's column.

My question is why have these 'companies' been allowed through all the regulatory checks, allowed a stock exchange listing, resulting in UK investors being scammed out of millions in the process? Is there any case for a claim against the regulatory authorities for misconduct and if so who/which one?

gadgetmind

You may enjoy this thread on MF.

http://boards.fool.co.uk/camkids-suspendedhead-of-aim-should-be-too--13272387.aspx?sort=whole#13272387