I just watched a documentary on Netflix called The China Hustle, it is about how small companies in China list themselves onto the stock market (NYSE) using a tactic called 'reverse merger'.

The show is about how companies with essentially nothing or small business in China was able to list onto the NYSE with documents that show them as huge companies.

They do this by having to merge with companies that are listed in NYSE but are no longer in business where most of these companies are located in Nevada.


I find this show very infomative and disturbing because throughout the show, they mention of big company names that help get these China companies listed as they go through audits and law firms help them as well but no one raised any questions when things were suspicious.

By listing the China companies in NYSE, retail investors like you and me can buy...