China Paper Holdings

[yeokiwi]

http://info.sgx.com/webcoranncatth.nsf/V...700143BAA/$file/CP-FireOutbreakAtOfficePremises_17Dec12.pdf?openelement

The Board wishes to inform that there were no casualties caused by the fire and the fire took approximately one hour to be put out. The Company has reported the incident to the local authorities, who have conducted the necessary investigations. According to the investigations carried out by the local authorities, the fire was caused by an electrical short circuit in the office premises. As the Company’s financial records were kept in the affected office premise where the fire occurred, the financial records for FY2011 were destroyed by the fire, whereas the financial records for the first eight months of 2012 were partially damaged and the financial records for September to November 2012 were severely damaged.

It has been established that financial records are highly flammable.

[Musicwhiz]

It has been established that financial records are highly flammable.

Yes, apparently so.

Look at this headline a year ago:-

"Business Times - 25 Apr 2011

Fire at Sino Techfibre factory destroys records"

Hmmm....

[Greenrookie]

This company never had enough raising funds from the market.

[Stockerman]

Another S-chip taking investors for a ride...Let's see if there will be more fire down the road for any of the S-chips...
I nearly fell off my chair when I saw this fire news...

[d.o.g.]

This is too funny.

Meanwhile, in related news:

http://www.channelnewsasia.com/stories/s...39/1/.html

Choice quote:

"After a meteoric rise between 2005 and 2007, S-chips crashed in the couple of years that followed, undone by a number of accounting fraud cases.

Mr Gerald said this does not mean all S-chips are bad, adding that out of all the listed S-chips, only 13 have had problems."

Hello? Earth to David Gerald: "What planet are you living on?"

My own limited shortlist of "problem Chinese companies" already way exceeds 13:

Beauty China
Cacola
Celestial Nutrifoods
China Essence
China Fibretech
China Gaoxian
China Hongxing
China Milk
China Printing & Dyeing
China Sky Chemical Fibre
China Sports
China Sun Bio-Chem
Dapai
Eratat
Ferrochina
Fibrechem
Foreland Fabrictech
Hongwei
Oceanus
Oriental Century
Qingmei
Sino-Environment
Sino Techfibre
Synear
United Food

That's 25 right there. If we count China Paper that makes 26, which is double the august Mr Gerald's claim.

The CNA article claims a peak of "almost 160" Chinese companies 2 years ago. OK, let's say 159. 26 out of 159 is over 15%.

I do not know of any other developed-market stock exchange where over 15% of a group of companies can have obvious accounting issues and the stock exchange says "no problem".

The SGX needs to grow a spine and stand up to these jokers. Lobby MAS to change the regulations if need be. Sure, the Chinese bosses are overseas, but the investment bankers are local, right? So if the investment bankers pay heavy fines or go to jail, the supply of garbage will quickly stop.

[pianist]

what about china kangda, is not in yr list...does it mean it is ok?

[d.o.g.]

what about china kangda, is not in yr list...does it mean it is ok?

For China Kangda I didn't look closely but the latest financials for 30 Sep 2012 show that it is barely makng money and has a lot of debt. So even if the financials are correct I am not interested.

Basically I have given up on S-chips so I don't bother looking any more, except out of morbid curiosity to see when they are going to blow up. Quite satisfying when they collapse actually, great feeling of "I told you so" and vindicates the work I do.

[lonewolf]

Let see:

IPO 36.5c. Rights 12c. Ave 21c. Sold 12.5c in Mar11. Last done 4.6c.

Looks like I dodge a bullet with this one.

[pianist]

thanks for the replies.
btw - it seems like SGX is acting like garbage in garbage out kinda postman service..

[Stockerman]

There are lots of "postman" in govt agencies as well...(if u know what I mean)...haha

thanks for the replies.
btw - it seems like SGX is acting like garbage in garbage out kinda postman service..

---

I like your use of the word "morbid" curosity
Surprisingly, a lot of people still seem to be interested in S-chips.
A few more S-chips will fall in the near term - it is a matter of time..

what about china kangda, is not in yr list...does it mean it is ok?

For China Kangda I didn't look closely but the latest financials for 30 Sep 2012 show that it is barely makng money and has a lot of debt. So even if the financials are correct I am not interested.

Basically I have given up on S-chips so I don't bother looking any more, except out of morbid curiosity to see when they are going to blow up. Quite satisfying when they collapse actually, great feeling of "I told you so" and vindicates the work I do.