Most publicly listed companies in the West require independent audits. Those audits are published for everyone to read. The listed company and the auditors are all tightly regulated, and while fraud can happen, it's relatively rare.

I think you're making the mistake of thinking that because fraud occasionally happens in the West, it's on anywhere close to the same scale as China. If Chinese companies were capable of passing independent audits, they'd all be publishing independent audits. That would be a massive confidence booster in China and internationally, and stock prices would rise significantly. They don't, because they wouldn't pass.

Fictional to who? After the Evergrande Group or Jack Ma I would imagine not to the Chinese government anymore outside China maybe a little.