International Happenings
Response to the following problem:
July 1, 1997, marked a historic date as Hong Kong reverted to political and economic control by mainland China. The Stock Exchange of Hong Kong offers the opportunity to invest in both local Hong Kong companies and in "red-chip offerings," which are stocks of companies that are listed in Hong Kong but controlled by mainland China interests. As an international investor, what accounting information might be helpful as you consider investing in the Hong Kong stock market?
For which variables in this situation is accounting information unlikely to be very helpful?