As 2012 draws to a close, two imminent issues hang over the world economy. The better known one is the so called fiscal cliff, which could result in simultaneous reductions in government spending and increases in taxes in the United States. The second lesser reported issue is the ongoing clash between the U.S. Securities & Exchange Commission (SEC) and the China Securities Regulatory Commission (CSRC), with the Chinese affiliates of the “Big 4” auditing firms PricewaterhouseCoopers (PwC), Deloitte, Ernst &Young (E&Y) and KPMG trapped in the middle, along with their clients.  While some suggest that Chinese firms should no longer bother trading on tightly regulated U.S. markets, the problem is actually much deeper, with similar cases pending in Hong Kong, and the overall implications painting a picture that investors in Shanghai and Shenzhen should be wary of too.

Read Here – The Diplomat