Companies
Taiwan’s MOF asks banks for details of Chinese loans to two troubled Chinese companies – Frankfurt-listed Chinese shoe company Ultrasonic AG whose executives disappeared with the loan and Golden Meditech (801 HK); TSU raises question of insider trading in Golden Meditech TDRs; FSC boss quizzed on Lien’s Golden Meditech TDRs
Taiwan’s Ministry of Finance specifically asked for details of banks’ lending to two troubled privately-owned Chinese companies – Ultrasonic AG and Golden Meditech Holdings Ltd.
A $60 million, three-year unsecured loan for Frankfurt-listed shoemaker Ultrasonic was accelerated on September 17 after two of the company’s executives disappeared with the loan proceeds. The creditors agreed to enter into further negotiations with Ultrasonic to try to avoid insolvency. Nomura co-ordinated Ultrasonic’s loan, which was signed in early August and Cathay United Bank was the agent. The loan had heavy Taiwanese participation – Chang Hwa Commercial Bank Singapore, Taiwan Business Bank Hong Kong and Taiwan Cooperative Bank OBU joined the deal as mandated lead arrangers. Cosmos Bank Taiwan and Hwatai Bank also participated. Taiwnese banks are now seeking additional protection to keep lending to Chinese companies after Ultrasonic’s high-profile loan default as the risks of lending to mid-sized Chinese companies that are being squeezed by the slowdown mount. “A standby letter of credit or other security on loans for Chinese privately-owned companies is a must for us in light of the Ultrasonic default,” a Hong Kong-based senior loan banker with a Taiwanese state-owned bank said.
Loans for Hong Kong-listed Chinese healthcare company Golden Meditech were also in the spotlight in September.
http://www.reuters.com/article/2014/10/08/loans-taiwan-idUSL3N0S33W120141008
Wed Oct 8, 2014 11:19am EDT
Taiwan’s MOF asks banks for details of Chinese loans
LONDON | BY CAROL ZHONG Continue reading
Bonus hogwash: The Stock Exchange and SFC continue to allow companies to make false and misleading statements about “bonus” issues of shares
http://webb-site.com/articles/bonusBS.asp
Bonus hogwash
11th June 2015
An awful lot of hogwash (we are using a family-friendly word) is produced in this town when companies announce “bonus issues” of shares, and the Stock Exchange and SFC continue to allow them to get away with making false and misleading statements in their “reasons for the bonus issue”. Indeed the very name is misleading – there is no “bonus” in issuing shares for free, because the increase in the number of shares is offset by a decrease in value per share.
Today’s glowing example comes from Forefront Group Ltd (Forefront, 0885). After a magical rise in its share price of 359% so far this year, it proposes, in its circular dated 12-Jun-2015, a bonus issue of 9 new shares for every share held. Economically this is the same thing as splitting each share into 10 shares. It makes no difference to the net assets of the company or the value of shares held by each shareholder, other than subtracting the costs spent on the exercise including producing the announcement and circular, sending out new share certificates and holding a general meeting.
Let’s analyse the false and misleading statements in the “reasons” section on page 9: Continue reading
中源协和 (Zhongyuan Union Cell & Gene: 600645 CH) 重组内幕交易悬疑; 干细胞概念水中月; 自2007年德源投资成为控股股东以后，中源协和就开始把干细胞业务当作主业来做，但是在经营业绩上并没有任何改观; 《st中源劫难未已》;《中源协和：3类干细胞药物临床申报再闯关》— 惊天骗局
http://www.yicai.com/news/2014/03/3530202.html; http://guba.eastmoney.com/news,600645,84472511.html; http://www.yicai.com/news/2014/08/4008680.html; http://www.yicai.com/news/2011/01/664035.html; http://www.yicai.com/news/2010/10/572868.html; http://stock.sohu.com/20140418/n398424207.shtml
中源协和重组内幕交易悬疑：溢价3倍收购IPO弃儿
理财周报 杨流茂 2014-03-03 07:40:00
引发市场关注的却不是重组本身，而是重组前中源协和实际控制人李德福的增持是否涉嫌内幕交易的问题。 Continue reading
Toshiba may need to mark down past earnings by over US$1.22 billion, nearly triple an earlier estimate, after an ongoing investigation into past accounting practices found more irregularities
http://uk.reuters.com/article/2015/07/03/uk-toshiba-accounting-idUKKCN0PD2FS20150703
http://asia.nikkei.com/Business/Companies/Toshiba-seen-lopping-more-than-150bn-yen-off-past-profits
Sat Jul 4, 2015 12:58am BST
Toshiba accounting errors may be over $1 billion – report
Toshiba Corp may need to mark down past earnings by over 150 billion yen ($1.22 billion or 0.78 billion pounds), nearly triple an earlier estimate, after an ongoing investigation into past accounting practices found more irregularities, a report said on Saturday. Continue reading
SGX-listed JES: Questionable transactions” between the group and companies in which group’s former chief executive and chairman Mr Jin’s interests were not declared
http://www.straitstimes.com/business/jes-probe-into-dodgy-payments-delayed
JES probe into dodgy payments delayed
8 HOURS AGO
A female employee has delayed an investigation into dubious payments to the former boss of Chinese shipbuilder JES International by “absconding” with the company’s books. JES International has begun legal proceedings in China against the woman, administrative officer Ju Li Li, to recover the documents. After Mr Jin Xin, the group’s former chief executive and chairman, resigned in March, Ms Ju “absconded” with the group’s administration records and seals of all its Chinese subsidiaries, JES told the Singapore Exchange last night.
JES, now helmed by Mr Jin’s daughter, Ms Audrey Jin Yu, said it had intended to investigate its financials after uncovering possible irregularities during a periodic review. These included “questionable transactions” between the group and companies in which Mr Jin’s interests were not declared, JES said. Continue reading
Hanergy declines to disclose parent’s accounts to HK bourse
http://uk.reuters.com/article/2015/06/24/hanergy-tfp-hkex-disclosure-idUKL3N0Z82US20150624
Wed Jun 24, 2015 3:30am BST
EXCLUSIVE-Hanergy declines to disclose parent’s accounts to HK bourse -sources
HONG KONG, JUNE 24 | BY CLARE JIM
The Hong Kong bourse has asked Hanergy Thin Film Power Group (HTF) to hand over its Chinese parent company’s accounts before it will let the suspended stock trade again, but HTF is resisting the request, sources told Reuters. Two sources familiar with the matter said HTF is studying a proposal that as an alternative to disclosing the parent company accounts to Hong Kong Exchanges and Clearing Ltd (HKEx), HTF could buy parts of its parent, Hanergy Holding.
Hanergy Holding, which buys solar panel making machines from HTF and then makes solar panels for sale to third parties, accounted for two-thirds of HTF’s sales last year. Analysts say that makes HTF overly dependent on group sales, and since unlisted Hanergy Holding doesn’t publish accounts, it is impossible to know whether there is independent demand for the end product. The proposal from HTF would bring the entire supply chain and ultimate sale of solar panels into its own books, the sources said. Continue reading
FSC will launch an investigation into an alleged stock trading fraud involving biotech firm Zodic Light World Technology
http://www.chinapost.com.tw/print/439075.htm
FSC to probe alleged stock fraud involving Zodic
Wednesday, June 24, 2015
CNA
TAIPEI–The chairman of the Financial Supervisory Commission (FSC, 金管會) said Tuesday that the FSC will launch an investigation into an alleged stock trading fraud involving biotech firm Zodic Light World Technology Inc. (兆良科技). Tseng Ming-chung (曾銘宗) made the comments after a securities trading fraud case surfaced in the local media, which reported that prosecutors have searched Zodic and its subsidiary and affiliates, while summoning 14 people for questioning over the alleged fraud. The FSC is the top financial regulator in Taiwan, supervising trading activity in the local financial market such as equity trading, banking business and the insurance sector.
Tseng said the FSC will find out whether Zodic disseminated false information about the company in a bid to lure investors into buying its shares and obtain large amounts of funds from the public. According to the local media reports, prosecutors in Taipei received a report from former Zodiac employees who said that the Taoyuan-based biotech firm took a large amount of money from investors since it claimed that the company has bright prospects. While Zodic described itself as a minimal invasive abdominal surgery device provider, prosecutors found that it is only a shell company and does not own any production facilities, according to the media report. The report cited prosecutors as saying that Zodic Chairman Lo Hsu-liang (羅祤亮) spent only NT$2 million (US$64,516) to set up the company in 2011, and borrowed money to inflate the paid-in capital to NT$300 million. Continue reading
SEC Freezes Assets of China-Based Trader for Suspicious Trades on Qihoo
SEC Freezes Assets of China-Based Trader for Suspicious Trades on Qihoo
The regulator cites suspicious timing and size of trades ahead of a $9 billion buyout offer
The U.S. Securities and Exchange Commission sign at its headquarters in Washington. The SEC froze assets of a China-based trader over suspicious activity ahead of Qihoo’s buyout offer. PHOTO: BLOOMBERG NEWS
JACKY WONG
June 23, 2015 10:26 p.m. ET
HONG KONG—The U.S. Securities and Exchange Commission got a court order Tuesday to freeze the assets of a China-based trader for suspicious activity ahead of a $9 billion buyout offer for a U.S.-listed Chinese Internet company last week.
Toshiba accounting problems extended to chip, PC ops: Nikkei
http://www.reuters.com/article/2015/06/22/us-toshiba-probe-idUSKBN0P22IF20150622
Mon Jun 22, 2015 7:57pm EDT
Toshiba accounting problems extended to chip, PC ops: Nikkei
Toshiba Corp’s semiconductor and personal computer businesses were also affected by accounting irregularities, which is likely to force the Japanese industrial conglomerate to revise down profit further, the Nikkei business daily reported. In May, Toshiba set up a third-party committee to expand a probe into other businesses after an internal investigation found accounting problems related to infrastructure and construction work. The company has said inappropriate book-keeping likely led to profits being overstated by about 54 billion yen ($438 million) in recent years. A Toshiba spokeswoman said the Nikkei report was not based on anything that the company had announced and that the third-party investigation was ongoing. The probe is expected to take until mid-July.
AsianExtractor: Unearthing Accounting Fraud in Asia 