Are Chinese Stocks on Sale, or Is the Auditing Fallout Just Getting Started?

Last week, a U.S. judge ruled that the Chinese units of the Big Four auditing firms -- Ernst & Young, Deloitte, KPMG, and PricewaterhouseCoopers -- would be barred from auditing U.S.-listed Chinese companies for six months. The decision is being appealed, and it won't be until after the appeal hearing that the ruling could go into effect.

Needless to say, a lot of investors got worried, and Chinese technology stocks in particular fell after the news broke. So what does this mean for investors?

In the video below, Motley Fool contributor Brian Stoffel talks about the approach investors need to take if they're considering buying Chinese technology stocks.  Brian also highlights five solid businesses in China that led the sell-off but may now represent attractive buying opportunities.

Profit from China without all the fuss
While buying one of the companies mentioned in Brian's video might sound like a good idea, there are other, safer ways to profit from the growth of the Chinese economy. For instance, there is a coming boom in the Chinese auto market that will be huge!

As Chinese consumers grow richer, savvy investors can take advantage of this once-in-a-lifetime opportunity with the help of this brand-new Motley Fool report that identifies two automakers to buy for a surging Chinese market. It's completely free -- just click here to gain access.

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  • Report this Comment On January 28, 2014, at 3:12 PM, plange01 wrote:

    google must have paid a fortune in get the leaderless US gov to give these Chinese companies a hard time...

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Brian Stoffel

Brian Stoffel has been a Fool since 2008, and a financial journalist for the Motley Fool since 2010. He tends to follow the investment strategies of Fool-founder David Gardner, looking for the most innovative companies driving positive change for the future.

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