Scouring accounting footnotes to prevent tunnelling
KEE KOON BOON
19 August 2015
Business Times Singapore
Framework needed to tackle insiders’ stealing of corporate wealth.
IMAGINE that the S-chip (Singapore-listed China stocks) fraud with its “missing cash phenomenon” and the penny stock scandal never happened – because there was a way to prevent them.
While accounting information and disclosures may be abused to deceive, instead of being used to inform, there is a countermeasure if one only looks for it. For fraud perpetrators actually, if inadvertently, leave behind a trace of their accounting transgressions in the footnotes of annual reports.
BSE takes measures to plug tax evasion, money laundering
Ashwin J Punnen
16 August 2015
The Bombay Stock Exchange (BSE) is putting in place a series of measures to prevent use of its exchange platform by various unscrupulous entities to evade taxes and launder money. These measures include putting additional circuit filters on stocks that are susceptible for price manipulation and reducing the number of out of the money option contracts. The exchange recently put weekly, monthly, quarterly and yearly circuit filters on about 4000 stocks that are exclusively traded on the BSE and stocks listed on its SME and SME ITP platform. The exchange has also reduced the number of strikes in an option contracts available for trading from seven to three after it has found that deep out-of-money contracts were used by entities to convert black money into white. Continue reading
Hanergy’s High Demands for Rehabilitation; Solar firm Hanergy is bringing its profits down to earth, but the next step comes with strings attached
Aug. 17, 2015 7:45 a.m. ET
Under regulatory pressure, Hanergy Thin Film Power is bringing down its lofty reported profits. But this once-wunderkind of the solar world may also be trying to pressure regulators into helping it merge with or buy assets from its parent. More than two months after its Hong Kong shares crashed and were suspended, Hanergy warned over the weekend that it could report a loss for the first half of the year. That is hardly surprising. Continue reading
Doubling your frozen capital, Hong Kong style
| Aug 17 08:30 | 2 comments | Share
Jennifer Hughes in Hong Kong
And then there was $29bn in frozen capital. When we last calculated the equity value of long-suspended Hong Kong stocks in July, it came to just $12bn. News from the biggest of the new entrants to the HK freezer is not exactly lifting the tone of the group, either. Last Friday, Tianhe Chemical, with $3.7bn in market cap, warned its auditor is planning to “disclaim” its opinion of the group’s delayed 2014 accounts while the auditors for Sihuan Pharmaceutical, which provided $5.9bn of the added frozen equity, did exactly that in its (also delayed) accounts, also published last week.
Troubled Noble Group to explain how its business works
PUBLISHED : Sunday, 16 August, 2015, 11:58pm
Jing Yang firstname.lastname@example.org
Noble Group will hold an investor conference in Singapore today in another bid to fight off attacks over its accounting practices after endorsement from a second auditor failed to convince markets and detractors last week. Continue reading
Updated : 2015-08-18 17:53
Regulator raids accountant for allegedly using inside information
By Kim Jae-won
The financial regulator said Tuesday that its officials raided an accountant’s house, and searched his car and cell phone because he allegedly traded stocks using inside information. It is the first time in 13 years that the Financial Services Commission (FSC) exercised its authority to raid people suspected of committing financial crimes. Continue reading
Related: Aluminium products maker China Zhongwang hit with book-cooking and fraud allegations; Liu and parties related to him took out some HK$36.5 billion in loans from mainland banks, and used the funds to buy Zhongwang’s aluminium products since 2011. HK$38.5 billion of Zhongwang’s revenues has been “fraudulent sales to Liu-controlled undisclosed related parties”. “If Zhongwang is on the hook for these loans, it could be insolvent.”
August 13, 2015 1:31 pm
Shares in China aluminium group hit despite inflated sales denial
Lucy Hornby in Beijing
Shares in China Zhongwang Holdings slumped 12 per cent on Thursday after trading in the world’s second-largest producer of aluminium products resumed for the first time since it denied allegations of inflated sales in a short sellers’ report. The report by the previously unknown Dupre Analytics accused Zhongwang and Liu Zhongtian, its founder, of routing exports through undisclosed related companies. Dupre alleged this was done to obtain tax rebates from the Chinese government. Continue reading