A unit of Macquarie will pay $15 million to resolve accounting fraud charges by the SEC that it underwrote a public offering for China’s Puda Coal; The case is the SEC’s first against an underwriter in its long-running crackdown on alleged accounting fraud by Chinese companies, many of whom entered the U.S. capital markets through backdoor mergers

http://www.wsj.com/articles/macquarie-to-pay-15-million-to-settle-sec-charges-tied-to-puda-coal-offering-1427467456

Macquarie to Pay $15 Million in Puda Coal Case 

By Aruna Viswanatha

28 March 2015

Dow Jones Institutional News

WASHINGTON–A unit of Macquarie Group Ltd. will pay $15 million to resolve charges by the Securities and Exchange Commission that it underwrote a public offering for a China-based company even though it had information that contradicted statements in the offering materials.

The case is the SEC’s first against an underwriter in its long-running crackdown on alleged accounting fraud by Chinese companies, many of whom entered the U.S. capital markets through backdoor mergers. Continue reading

China Ting (3398 HK) – Net Loss due to Entrusted loans turned sour + Reclassification of equity investment in property asset from investment in associate to available-for-sale financial asset at fair value

26 March 15

(3398) China Ting: China Ting Group Holdings confirmed that its loss before the tax for the year ended 31 December 2014 will increase from previously  estimated HK$193 m to HK$246.9 m due to the following additional factors: (1) An impairment amount of HK$83.5 m is charged on the re-classification of its investment in Zhejiang Haoran Property Company; (2) A pro vision for bad and doubtful debt for HK$17.7 m regarding two entrusted loans of RMB160 m; (3) Increase in the estimated amount of operating profit for the last two months of 2014

20 January 15

CBRC issued draft rules restricting entrusted loans in a bid to curb excessive margin finance. The draft rules said banks shall not bear credit risks if the loan defaults, and lenders shall not issue entrusted loans if the fund is raised for specific uses by the authorities or raised from bank lending. Banks shall not issue entrusted loans using funds raised through debts, raised from other companies or individuals, or other sources that cannot be identified. Entrusted loans is a form of inter-company loan where bank intermediates one company’s lending to another company’s borrowing and collect a fee in the process. Entrusted loans have been used as a margin trading channel that may bring risks to banks as in the past when there was default in lending, it was usually the banks that bore the risks, said market insiders. The draft rules are open to public comment until 16 Feb for sugg estions on amendments

Glitch in Rongsheng Rescue Sheds Light on Shady Investor; Capital market veteran Wang Ping had sights set on struggling shipbuilder, but has been detained on fraud charges in investment funds

http://english.caixin.com/2015-04-03/100797361.html

04.03.2015 12:26

Glitch in Rongsheng Rescue Sheds Light on Shady Investor; Capital market veteran Wang Ping had sights set on struggling shipbuilder, but has been detained on fraud charges

By staff reporter Yu Ning and Hong Kong correspondent Wang Duan

(Beijing) – The detention by police of a capital market veteran has interrupted the restructuring plans of China’s largest private shipbuilder and shed light on the tricks used by an investor who seems to have always profited from distressed companies. In early March, debt-ridden shipbuilder Rongsheng Heavy Industries Group Holdings cancelled a planned 3 billion yuan warrant issuance to the private equity firm Kingwin Victory Investment Ltd. Continue reading

Stock manipulation: India’s Twentyfirst Century Management Services

http://www.moneylife.in/article/stock-manipulation-twentyfirst-century-management-services/41039.html

Stock manipulation: Twentyfirst Century Management Services

2 April 2015

Moneylife

The stock price of Twentyfirst Century Management Services is up 926%. The stock averages just about 75 trades a day, with an average daily turnover of only Rs6 lakh

Twentyfirst Century Management Services (TCMS) is apparently engaged in trading and investment in Indian capital markets. In 1998, its registration as a merchant banker was revoked for not exercising due diligence. In 2008, TCMS was suspended from trading due to non-compliance with the listing agreement. TCMS cites poor market conditions for its poor financial performance in the past few years. Because of low retail participation, TCMS withdrew the broking services offered by its subsidiary Twentyfirst Century Shares and Securities and surrendered the trading membership of the NSE. It reported marginal revenues and a net loss in past few years. But, suddenly, over the past few quarters, its fortunes changed. For four quarters ended December 2014, it generated revenues of Rs19.35 crore while net profit amounted to Rs14.87 crore. The stock price is up 926% to Rs39 (on 20 March 2015) from Rs3.80 on 19 March 2014. The stock averages just about 75 trades a day, with an average daily turnover of only Rs6 lakh. Not suspicious enough for the regulator, despite the stock’s vertical trajectory?