Accounting Fraud Cases: Hongwei Technologies and China Hongxing Sports

Posted by Amy CHAN Wen Yi, final year undergrad at the School of Accountancy, Singapore Management University

Amy: I was reading through the articles on “Detecting Accounting Fraud in Asia” (Part 1, Part 2) written by KB and noted the fact that companies owning high net cash in the balance sheet does not mean that they represent “must-buy” investments. Some examples would be China Hongxing Sports Ltd, Hongwei Technologies Ltd and China Gaoxian Fibrefab Holdings Ltd.