Chinese stocks—including the ones listed in the United States—have tumbled since Chinese president Xi Jinping was confirmed as the country’s leader for an unprecedented third term while choosing Communist party allies over global financial experts as members for the Politburo standing committee.

However, volatility is not the only risk linked to owning Chinese stocks that are traded on U.S. stock exchanges. Plaintiffs firms have sued several Chinese companies in recent years over alleged fraud related to artificially undervalued stock offerings.