One of the reasons is the VIE structure. https://www.cliffordchance.com/content/dam/cliffordchance/briefings/2011/10/vie-structure-in-china-faces-scrutiny.pdf
Chinese VIE Structure: Wall Street Continues to Ignore the Risks – GCI Investors
The second issue is already talked about in this thread which is poor accounting standards.
For me, the VIE structure takes away the confidence in buying Chinese stocks.
Also read about the Alibaba Yahoo standoff in 2011
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