Once a favorite to the struggling US capital market after the financial crisis, listed Chinese companies are now facing a credibility crisis in the US.

The reputation built by listed Chinese companies during the past decade, has crumbled.

So far, 25 Chinese companies have been suspended or delisted.

Nothing like this was predictable a year ago. By the end of 2010, a total of 167 Chinese companies were listed on the Nasdaq. And their performance was outstanding. Statistics in 2009 show that the average revenue for listed Chinese companies was around 130 percent. Five concepts stocks even increased over 1000 percent.

The high revenue soon raised suspicion. A Barron's report in early October last year, warned investors of the risks involving Chinese firms that have gone public in the US through reverse mergers.

The report and several similar stories in other publications have brought down share prices of many listed Chinese companies, triggering an outcry for fair reporting.

Although a few fraud cases does not represent all the US-listed Chinese companies, many believe they have shattered investors confidence in Chinese enterprises. Now, as the investigation carries on, there may be more trouble in store for them.