July 1, 1997, marked a historic date as Hong Kong reverted to political and economic control by mainland China. Despite uncertainties caused by this change, traditional Hong Kong stocks have performed well. At the same time, "red-chip offerings" (stocks of companies controlled by mainland China interests that are listed on the Hong Kong stock exchange) have sizzled. As an international investor, what ac- counting information might be helpful as you consider investing in the Hong Kong stock market? What variables are present in this situation for which accounting in- formation is not likely to be very helpful?