NEW YORK, June 16 Home Inns & Hotel Management
Inc's HMIN.O share sell-off with other U.S.-listed China
stocks over concerns about accounting practices is unwarranted
given its higher earnings quality compared with its peers.
Home Inns is down nearly 30 percent from last year's highs,
partly on broad fears about accurate accounting at many small
But an analysis of Thomson Reuters data shows Home Inns is
in the top 15 percent of the 272 U.S.-listed China companies,
according to Reuters Insider quantitative analyst Mike
The analysis is based on StarMine's earnings quality score,
which takes into account accruals changes, cash flows and
It is among just a handful of Chinese companies with high
overall quality scores that has no recent CFO changes, no
material weaknesses reported with its accounting controls and
that employs a mainstream auditing firm, Tarsala notes.
Another higher-quality China name based on its balance
sheet is video game maker Perfect World Co Ltd PWRD.O, a
company with high StarMine earnings quality scores that also
trades at a price-to-earnings discount versus peers.
To watch the analysis in full, click on
(Reporting by Mike Tarsala; editing by Andre Grenon)