This case is used in Darden's Global Executive MBA core ""Accounting for Managers"" course. In January 2011, an independent registered investment advisor has noticed that in the previous year 300 Chinese-owned companies had launched initial public offerings in the United States. A number of U.S. investors had purchased broad market exposure through exchange-traded funds and mutual funds to capitalize on China's growth. With reports of the Chinese economy overheating and a possible bubble in the housing market, some of those investors had asked the investment advisor whether they should be more selective and pick individual growth companies instead. While casting his eyes over the list of companies from his favorite research report, one in particular caught the investment advisor's attention?China Electric Motor, Inc. (China Electric). But in his research, the investment advisor uncovered mixed results about China Electric.