1.a. Mr. Bao is a chinese investor who owned 35 percent of the shares of a chinese A&H-share publicly traded MNC traded in china, hong kong, london and NASDAQ. Mr. Bao is concerned with the differences between the chinese GAAP, IFRS( international financial report standards) and US GAAP and their impact on the financial statement. Explain the differences and discuss potential impacts on shareholders' equity, net income and other items on the financial statement at the end of 2008.
1.b. Briefly comment on investor trading rights and GAAP requirements for different types of shares in china.
1.c. Why so many chinese firms recently cross listed in the U.S. stock exchanges, particularly OTC?
