Lynette Khoo, BT, made a mistake in her report regarding corporate scandals rocking the s-shares locally. For those uninitiated, s-shares refers to China companies but listed in SGX. China milk announced in SGX about the error without explaining much or reassuring. I guess it's self explanatory. Here's the report:
I've highlighted the parts that need to be corrected. The erratum is here:
Not that it matters. In this kind of market, prices will get slashed anyway. But s-shares seem to have taken the bulk of it, perhaps due to the perception that their management or corporate governance is not good, or simply that the business quality is just not that good. The best are in China or in HK, I must say.
These are the list of s-shares scandals that I know of:
1. CAO - china aviation oil debacle, where the CEO Chen Jiulin ran up losses of up to $550 m on trading losses back in 2005.
2. Ferrochina - unable to pay off debts, and banks unwilling to revolve their short term debts.
3. China printing and dye holdings - CEO and deputy CEO went missing. Rumors are that their parent company is unable to repay creditors money.
4. Tianjin Zhong Xin Pharma and New Lakeside filed adjustments to previous financial statements. Don't it all remind us of Worldcom and enron?
I've said that I'm getting sick of all these kind of quality of companies listed in Singapore. I shall stay clear of them and have my reservations against them. Don't get me wrong, I'm still pretty bullish on China, it's just most of the china companies listed here are not that great. With Cosco dragged down from $6 to today's close of $0.815, I think it's safe to say that ALL s-shares are now below $1.
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