The lack of effective corporate regulation in China is well known in the Western World, especially in respect of ongoing patent and copyright infringements, and the scams you mention Don comes as no surprise. (judithcurry.com)
These are the current introduction of entity based regulation; the introduction on 6 October 2011 of both outcomes focused regulation (and with it a new Code of Conduct) and alternative business structures (ABS) which will enable lawyers and non-lawyers to share the management and control of a business which provides reserved legal services to the public; and the creation of the SRA Corporate Regulation Group to enhance our relationship with the major firms in the corporate sector. (newlawjournal.co.uk)
[And maybe the best Ben Graham - type market in the world, if you can't resist that sort of thing...] Of course, investor sentiment's improved accordingly — concern about the fate of the yen & Japan's debt burden has abated for now, and Shinzo Abe has generated new expectations of meaningful change and progress in terms of corporate regulation, shareholder value & governance, and investor activism. (wexboy.wordpress.com)