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Stock exchanges raise concerns over companies’ possible earnings manipulation

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More and more Chinese listed companies have issued alerts for hefty net losses in 2018, some slashing earnings estimates from decent profits to huge losses and many of them citing asset write-offs, in particular goodwill impairment. Chinese stock exchanges have raised concerns over possible manipulation of earnings, a practice called "big bath".

On January 30 and January 31, the stock exchanges in Shanghai and Shenzhen issued at least 37 letters to public companies to inquire about their slashing earnings . . .

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