Longtop began trading on the New York Stock Exchange after an initial public offering in 2007.

FORBES: Deloitte Squeezed by SEC, Chinese Regulators

More worrying are recent accusations against New York Stock Exchange-listed Longtop Financial (LFT).

FORBES: Why Corporate Governance is So Important to China

Longtop went public in 2007 through a traditional IPO method in the US and listed on the New York Stock Exchange.

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Short-sellers recently accused Longtop of inflating its margins by hiding operating costs.

FORBES: Why Corporate Governance is So Important to China

The posturing over the Deloitte-Longtop affair may make a resolution more difficult.

ECONOMIST: A dreadful choice: whether to annoy America or China

If Longtop gets delisted like a much smaller RTO company (which seems very likely), it will send shockwaves through the American investor community.

FORBES: Why Corporate Governance is So Important to China

It may also fear a dam-bursting effect if the SEC finds nasties in the Longtop accounts that prompt it to demand other companies' audit papers.

ECONOMIST: A dreadful choice: whether to annoy America or China

Getting institutional investors to come to the roadshows of Chinese companies looking to list in the U.S. is just one of the problems in the wake of the scandals over accounting and transparency issues highlighted by Longtop and Muddy Water.

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