Outsourcing company China Customer Relations Centers (CCRC) listed on the NASDAQ in 2015. In November 2018, the company announced a privatisation bid led by its chairman at US$16/share. A few days later, short-seller J Capital published a report which alleged that the privatisation offer was simply an attempt to stabilise the share price and it would never happen. J Capital went on to allege that the company was faking sales and understating costs in an attempt to inflate profits. It also believed that the company's Variable Interest Entity (VIE) was not transferring profits to the foreign owned entity as designed. In May 2020, the company announced that the privatisation offer had been withdrawn. It was eventually taken private in July 2021 at US$6.5/share. As such, the fraud allegations were not proven but our analysis of the VIE suggest that it did not seem to be functioning as intended.

Last updated April 2022.

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