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Investors concerned about Carlyle's China investments

Insiders are questioning how rigorously Carlyle Group scrutinised portfolio companies accused of fraud

US private equity group Carlyle is under scrutiny from investors and deal makers for investments in two Chinese companies that have been accused of fraud and suspended from trading on stock exchanges in Hong Kong and New York, the Financial Times reported on its website Thursday.

Carlyle hold a 11% stake in China Forestry and a 22% stake in China Agritech, both of which have had their shares suspended from trading in recent months.

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