http://www.chinapost.com.tw/print/425942.htm
FAT denies Next Media allegations of asset theft by CEO
Thursday, January 8, 2015
The China Post news staff
TAIPEI, Taiwan — Far Eastern Air Transport (FAT, 遠東航空) yesterday refuted a Chinese-language magazine’s claim that the airline’s president hollowed out about NT$500 million of company assets. Continue reading
http://www.chinapost.com.tw/print/426030.htm
Drug tycoon implicated in breach of trust
Friday, January 9, 2015
By John Liu, The China Post
Prosecutors conducted a search on the residence of Lin Rong-jin (林榮錦), the former chairman of pharmaceutical company TTY Biopharm Company (東洋製藥), on suspicion of hollowing out company assets. Continue reading
http://www.btinvest.com.sg/personal_finance/young-investors-forum/a-re-look-at-china-stocks/
Posted by Amy CHAN Wen Yi, final year undergrad at the School of Accountancy, Singapore Management University
Amy: The BT article “A re-look at China stocks?” provided a good overview on China stock classifications and also discussed about some accounting irregularities that happened to some of the S-chip stocks. Excerpts below:
Discussion question: Do (systematic) accounting irregularities for a group of companies have negative spillover effects for others in the stock exchange, including resulting in a lower credibility and market valuation?
For example, SGX is panned as a place to raise funds in 2015: BT article on Jan 9, 2015
What type of companies tend to be impacted adversely and how to avoid the “infection”? What is the transmission mechanism (e.g. common ownership identity hidden in nominee accounts)? Will the overall market degenerate into a “lemon’s market” over time and how to solve the lemon’s problem?
A re-look at China stocks?
04 Nov 2013 17:39 by CAI HAOXIANG
A lack of confidence
Chinese companies have also chosen to list elsewhere, such as on the Singapore Exchange (SGX) and the New York Stock Exchange. However, many of these stocks have been plagued by a lack of investor confidence, making them easy targets for short-sellers. Continue reading
http://www.ft.com/intl/cms/s/0/94ad5524-94d8-11e4-8341-00144feabdc0.html#axzz3OCFl62cx
Earlier articles on Hanergy:
A little-known Hong Kong-listed firm has come out of nowhere to become the world’s largest solar-power company by market value. A tight relationship with its parent company should give investors reason to worry whether its time in the sun will last: Link
The Convoy Financial-Finsoft-Hanergy connection and aggressive accounting: Link
January 8, 2015 12:13 am
Short sellers feel the heat from Chinese solar group Hanergy
Jennifer Hughes in Hong Kong
Short sellers are sitting on potential losses of more than $300m in a little-known Chinese solar company whose stock has soared in spite of their heavy bets to the contrary.
Shares in Hong Kong-listed Hanergy Thin Film Power Group have more than doubled in the past six months, giving the distributor of solar equipment a market capitalisation of almost $15bn — almost as much as the three biggest US solar companies combined.
But several Hong Kong brokers report that hedge funds are still clamouring to borrow the stock, to short sell it: selling borrowed shares in the market in the hope their price will fall, so they can be bought back more cheaply and returned to their original owner. By doing this, short sellers can profit from falling prices — in effect, betting against the company’s shareholders — but lose when prices rise. Continue reading
http://www.wsj.com/articles/tailored-accounting-at-ipos-raises-flags-1420677431
Tailored Accounting at IPOs Raises Flags
Critics Say Companies’ Increased Use of Customized Earnings Measures Could Confuse Investors
MICHAEL RAPOPORT
Jan. 7, 2015 7:37 p.m. ET
Zoe’s Kitchen Inc. is serving up profits—but only after leaving some of its expenses off the menu.
Zoe’s, a chain of 125-plus Mediterranean-theme restaurants that went public in April, reported an adjusted profit of $13.2 million for the first nine months of 2014 under its own accounting treatments that strip out a variety of expenses. Including those expenses, as is required under standard accounting rules, Zoe’s reported a loss of $8.4 million. Continue reading
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.
http://www.businesstimes.com.sg/opinion/accountants-need-to-be-strong-in-their-ethical-principles
Accountants need to be strong in their ethical principles
Kang Wai Geat and Ang Soon Lii
847 words
7 January 2015
Business Times Singapore
NEWS broke on Dec 12, 2014, that three former top executives of Singapore Technologies Marine (ST Marine) were charged in court for corruption and falsification of accounts. Among them is ST Marine’s former financial controller, a professional accountant, who was charged with making fictitious petty-cash claims amounting to over S$500,000 when there were none. It would be easy and convenient for accountants, dealt another blow by this debacle, to be generalised as being dishonest. Continue reading
Reminiscence of an Asian accounting fraud case – Australia’s ABC Learning
Posted by Amy CHAN Wen Yi, final year undergrad at the School of Accountancy, Singapore Management University
http://www.abc.net.au/news/2008-08-27/fast-eddy-leaves-abc-learning-investors-reeling/490536
http://www.wsws.org/en/articles/2008/09/abcl-s30.html
‘Fast Eddy’ leaves ABC Learning investors reeling
Greg Hoy
Updated 28 Aug 2008, 10:26amThu 28 Aug 2008, 10:26am
Until six months ago, the world’s biggest child care operator, ABC Learning, looked like one of Australia’s great corporate success stories.
Looks can be deceiving, as ABC’s investors discovered the hard way. Continue reading
Founder executives held in graft probe following Zenith allegations
Monday, 05 January, 2015, 11:26am
Toh Han Shihhanshih.toh@scmp.com
Senior executives of securities firm’s parent held for questioning after two months of corruption accusations by shareholder Zenith
Top executives of Peking University’s Founder Group, the parent of Founder Securities which has been hit by allegations of corruption, have been taken away for questioning, Founder confirmed.
Founder Group chairman Wei Xin, chief executive Li You and president Yu Li were taken away by mainland authorities on Sunday “to assist with investigations”, the company said. Continue reading
http://www.wsj.com/articles/solar-giant-hanergy-requires-extra-sunscreen-1420444057
Solar Giant Hanergy Requires Extra Sunscreen
Hanergy Thin Film Power Group shares almost quadrupled in 2014, becoming the world’s largest solar power company by market value.REUTERS
ABHEEK BHATTACHARYA
Updated Jan. 5, 2015 9:30 a.m. ET
A little-known Hong Kong-listed firm has come out of nowhere to become the world’s largest solar-power company by market value. A tight relationship with its parent company should give investors reason to worry whether its time in the sun will last. Continue reading
AsianExtractor: Unearthing Accounting Fraud in Asia 