Reverse Merger Stock/Famine in North Korea

Segment 1:  Reverse Merger Stock

A common way that small companies go public is through a reverse merger with an existing company.  The SEC has publicly indicated it has been examining accounting and disclosure issues regarding Chinese companies that engaged in "reverse mergers".  Though these mergers are used by companies from other countries as well, such deals are especially popular with the Chinese.  The Public Company Accounting Oversight Board, or PCAOB, says nearly three-quarters of the 215 Chinese companies listing in the U.S. from 2007 to early 2010 did so via reverse merger.  As part of its inquiry, the SEC has suspended trading on some of these Chinese companies, questioning their truthfulness about their finances and operations.

Guest:  Robert Sherretta, President, International Investors Inc.

Segment 2:  Famine in North Korea

North Korea is a heavily controlled totalitarian dictatorship that severely punishes any challenges to its authority.  Many North Koreans flee to nearby China when faced with persecution by the state for criticizing the government or even for worshiping God.  The Chinese government cooperates with North Korea to repatriate refugees, and the world has very limited knowledge regarding the scope and severity of the North Korean refugee crisis.  Severe food shortages are also driving people to flee to China, risking their lives just to find food for themselves and their families.  North Korea's food supply is expected to run out this year.  Should the international community resume food aid?

Guest:  Roberta Cohen, Non-resident Senior Fellow, Foreign Policy Study, Brookings Institute