China Milk - another China company in trouble?

[Dennis Ng]

There seems to be a disproportionate number of Chinese companies listed in Singapore that are in scandal.

Below is a posting by D.O.G. from another forum for your information:

Basically, SGX is a for-profit enterprise, not a for-reputation undertaking. Therefore if they have to choose between profit or reputation you can guess which will come first. Of course, the official line is that SGX can be both a good operator AND a good regulator. You decide what you want to believe.

As to whether the problem is widespread or confined, the regulators have stated so far that it is not a big problem. The investors who got caught out by the various companies' antics obviously have a different view. You can compile all the scandals that have occurred over the past few years and see the breakdown for yourself. There are both local and foreign representatives, but the Chinese ones somehow seem to be disproportionately represented.

Some local examples:

Advance Modules
Advance SCT
Jade Technologies
JEL
Jurong Tech
Memory Devices
NEL

Some foreign examples:

Beauty China
Bio-Treat
Celestial Nutrifoods
China Aviation Oil
China Food Industries
China Milk
China Printing & Dyeing
China Sun Biochem
CHT
Daka Design
Ferrochina
Fibrechem
Oriental Century
Sino Environment
Sunshine Holdings
Zhongguo Jilong

The Chinese companies account for about 100 out of 700 total SGX listings. But somehow companies originating from China make up a much larger proportion of the scandals. The lists above are of course not comprehensive, but you get the idea.

[wemakebread]

Agree with you Dennis.

At the end of the day, it is still "buyers beware"!