S-chips make a comeback in Singapore

[lonewolf]

This is not surprising at all. When I was doing accounting and financial review in Vietnam and China, many companies kept two sets of books, one for internal Management purposes, and one for reporting purposes to the Regulatory Body. Some even had three! The third was for Tax authorities.

Is this really true? We always hear jokes about this but I never took it seriously until recently. Guess I am naive.

Am not THAT experienced, but i don't think the CLOB fiasco should be equated with S-chips.

Yes you are right. But my comment about S-Chips as the new CLOB is just limited to the observations that S-Chips are speculated excessively on SGX without much regards for the fundamentals. On any given day, I dare say at least 50% of the top 20 vol counters are S-chips.

It was the same in the CLOB days. CLOB counters were excessively speculated and accounted for the bulk of the trading on SES. I still rem how counters that were linked to this or that M'sia politician (Anwar-linked companies were darlings then) are chased up beyond its fundamentals.

Just like S-chips, there were gems in CLOB counters too. However I think the simple fact remains that most investors who put money in CLOB counters eventually got burned. (In fact I still have 1 CLOB counter in my CDP account!). I'm willing to bet that its probably the same for people who put money into S-Chips counters especially during IPO.