Fanya Exchange’s 36 billion yuan default ‘tip of iceberg’ in China; China investors in rare protest accuse regulators of “ignoring fraud”

http://www.scmp.com/print/news/china/economy/article/1861179/fanya-exchanges-36-billion-yuan-default-tip-iceberg-china

http://www.scmp.com/print/news/china/money-wealth/article/1861178/failed-china-financial-products-drew-investors-their-low

Fanya Exchange’s 36 billion yuan default ‘tip of iceberg’ in China

PUBLISHED : Friday, 25 September, 2015, 12:00am

Xie Yu yu.xie@scmp.com

Exchanges featuring products from garlic to rhodium are under scrutiny after Fanya metals case

Rhodium and steel to garlic and onion, you name it, they trade it. Hundreds of these so-called commodity exchanges, which have mushroomed across the mainland in a regulatory void and attracted 1 trillion yuan in investments, are now under the microscope. Continue reading

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Oligarchs and Orchestras: Inside Luxembourg’s Secretive Low-Tax ‘Fortress of Art’ Warehouse; Fraud allegations against Swiss entrepreneur Yves Bouvier, have cast a shadow on Luxembourg’s and Singapore’s Le Freeport, a high-security, low-tax warehouse for art

Oligarchs and Orchestras: Inside Luxembourg’s Secretive Low-Tax ‘Fortress of Art’ Warehouse; Fraud allegations against Swiss entrepreneur Yves Bouvier have cast a shadow on Luxembourg’s Le Freeport, a high-security, low-tax warehouse for art
By John Letzing And Max Colchester
24 September 2015
SENNINGERBERG, Luxembourg—Last year, David Arendt stood in a reinforced concrete warehouse at Luxembourg’s airport and welcomed wealthy collectors to his “fortress of art,” complete with high security, minimal taxes and discretion. Mr. Arendt warned that it would fill up quickly. Continue reading

Sebi may impose floor price for stock splits to curb market manipulation

Sebi may impose floor price for stock splits

JAYSHREE P UPADHYAY Mumbai

25 September 2015

Business Standard

The Securities and Exchange Board of India (Sebi) is likely to set a floor price for companies to qualify for stock splits in order to curb market manipulation. One of the proposals allows splits only in stocks priced above ~500 consistently for the previous six months. In a stock split, a company divides its existing shares and although the number of shares increases, their total value remains intact. Continue reading

Stash: SEBI to look into illicit arbitrage

Stash: SEBI to look into illicit arbitrage
21 September 2015
Widening its probe into suspected tax evasion and laundering of black money through stock markets, regulator Sebi is looking into illicit ‘arbitrage’ through derivatives trading from offshore locations. Also under the scanner are manipulation through ‘client code modifications’ in the past, although there has been a complete clampdown on this route for the past couple of years.

The Securities and Exchange Board of India (Sebi) was so far focusing on trades during the fiscals 2013-14 and 2014-15 in its fight against misuse of stock market platform for tax evasion and laundering of illicit funds. Continue reading

‘Sebi merger to help curb manipulation’

‘Sebi merger to help curb manipulation’
Shrimi Choudhary and Tarun Sharma
25 September 2015

The commodities regulator Forward Markets Commission (FMC) will be history soon and the market will have its new modern and autonomous regulator in Securities Exchange Board of India (Sebi) next week. The last chairman of FMC, Ramesh Abhishek says the merger will bring more certainty and transparency in the entire commodity space. In an interview with Shrimi Choudhary and Tarun Sharma, he said the market would see more new products and participants, thanks to the collaboration. Continue reading

Here’s why one hedge fund manager thinks Alibaba could be a big fraud

http://fortune.com/2015/09/18/alibaba-faking-numbers-hedge-fund/

Here’s why one hedge fund manager thinks Alibaba could be a big fraud

Jen Wieczner

SEPTEMBER 18, 2015, 5:42 PM EDT

Compared to Amazon and UPS’s figures, Alibaba’s numbers don’t add up, he says.

Alibaba has already had a terrible first year since its IPO: Its shares are down 28%. But one well-known hedge fund manager has a suspicion that, if true, could potentially destroy Alibaba’s stock completely.

In a post on his blog this week, Bronte Capital hedge fund manager John Hempton laid out reasons why the Chinese e-commerce company’s delivery figures seemed fishy. The possibility that Alibaba  BABA -1.36%  might be a fraud, he wrote, “is a thesis worth testing”—and plans to gather evidence, and potentially short the stock, depending on what he finds. Continue reading