China Gaoxian turn out to be the third company listed on the SGX after China Hong Xing and Hongwei to be investigated for accounting irregularities.
I hope non of my friends and readers out there were suck into this.
Disclosure: I was vested in Hongwei in the past.
The amazing thing is: China Gaoxian managed to raise $223.8m (net proceeds) in new capital via a KDR issue (30m KDRs; or 600m new shares) in January 2011!
Right now the situation is that
- China firms seem to think that listing in Hong Kong is a difficult proposition. The rules are more stringent.
- If they want to con money the best place seems to be SGX.
- SGX have a reputation of having lax rules because they want to increase the number of listings and a reputation of a leading exchange.
- After they list in Singapore, they use this reputation and credentials to get it listed on another exchange to get even more money!
- On top of this MAS in singapore will not do much because they will always say INVESTMENT HAS ITS RISKS, you as the investor should take care of your own problem!
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