Profit warnings, auditor disputes and delistings involvingChinese companies trading on foreign exchanges are fueling investordistrust, wiping out valuations and poisoning the market for newlistings.

The 180 Chinese firms that went public in New York, Hong Kongand on other global exchanges since the start of 2010 are tradingon average 21 percent below their offer prices, according to datacompiled by Bloomberg. The MSCI World Index has gained 10 percentin the same period, while the 407 initial public offerings in theU.S. since the beginning of that year have advanced on average 4.4percent.

At least six disputes have broken out this year between auditorsand Chinese companies listed in Hong Kong. More than a quarter ofChinese firms that went public on the city's main board in 2010, arecord year for volume, have lowered forecasts since they startedtrading, compared with less than 10 percent of non-Chinesecompanies that had IPOs there that year.