Latest China play to run into difficulty is education firm Oriental Century (5II.SG), whose shares have been suspended following claims former chief executive inflated sales, cash balances.
China Stocks Suspended:
Zhonghui (S)
Guangzhao IFB (S)
SP CHEM (S)
China Print Dye (S)
Ferrochina (S)
Fibrechem (S)
Oriental Century (S)
Beauty China (S)
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S-Chips Drop; Hit by Another Governance Issue
12 March 2009
[Dow Jones] Singapore-listed China plays, or S-shares, underperforming as sector hit by yet another corporate governance problem; FTSE ST China index down 2.0% at 131.06 having hit new all-time low of 130.82 earlier in session vs FTSE ST All Share index down 0.7%. Latest China play to run into difficulty is education firm Oriental Century (5II.SG), whose shares have been suspended following claims former chief executive inflated sales, cash balances. Company is 29.9% owned by Raffles Education (E6D.SG), who has halted its shares, says in statement that if Oriental ceases to be going concern, it will write-off its investment of S$34.6 million. Another China play Sino-Environment (Y62.SG) lifted the suspension on its shares today and has seen its shares tumble 72.9% to S$0.08 on worries over forced share sale by controlling shareholder after it used shares in company to secure loan. “When the economy slows these kind of smaller growth companies suffer, some will die, others will survive and thrive; the problem is it’s very difficult to know which is which right now,” says foreign house analyst. Oriental Century last traded Monday, closing down 16.2% at S$0.155; Raffles Education closed down 11.3% at S$0.315 yesterday. (KIG)
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