The China Hustle is a documentary film that takes a closer look at the illegal and fraudulent practices of numerous Chinese companies that have been listed on American stock exchanges. These companies have taken advantage of the lax regulations and oversight in the American stock market to inflate their earnings and deceive American investors. The film includes interviews with whistleblowers, investors who have lost millions of dollars, and experts who warn of the dangers of investing in Chinese companies.
Through interviews and archival footage, the film shows how Chinese companies have used reverse mergers and shell corporations to bypass traditional IPOs and list on American stock exchanges, without undergoing the rigorous scrutiny of the SEC. These companies then used fraudulent accounting practices to inflate their earnings and attract investors.
The film also highlights the complicity of Wall Street investment banks, auditors, and lawyers who enabled this fraud to take place, and who profited from the fees associated with these listings. Meanwhile, American investors who believed they were investing in a legitimate company lost millions of dollars when these Chinese companies collapsed.
Directed by Jed Rothstein, The China Hustle is an eye-opening and disturbing look at the greed, corruption, and lack of accountability that exists in the American stock market. It serves as a cautionary tale for investors and regulators alike, demonstrating the importance of due diligence and transparency in financial markets.