Photo from Bully the Bear

Photo from Bully the Bear

Do you know what s-shares stand for?

S-shares stands for stupid shares. Actually they are Singapore listed, China-based companies. What have they done to incur the wrath of investors locally? Let’s trace it…

1. All began with Ferrochina. The details are hazy, but it goes more or less like this: Debtors force ferrochina to repay their short term debts, and nobody wants to lend ferrochina money to tide them over. Company declared bankrupt, and shareholders ‘dieded’. Suspended from trading.

2. China printing & ‘Dying’ – this one is comically, though not so funny to shareholders. The husband and wife CEO team from the parent company went runnng. Suspended from trading.

3. Fibrechem – auditors have problems finalizing the trade receivables and cash balances at 31st December 2008. Shares are suspended from trading now.

4. Beauty china – Some party wanted to buy over the shares of the CEO, who is a major shareholder himself, as his stakes take up 38.7% of the total shareholdings. It seems that part of the shares sold by the CEO are due to margin calls – which means that the CEO had pledged his shares to do some borrowings. Suspended.

5. Sino-env – CEO had a company, who pledged his shares in sino-env as a pledge to hedge funds. Now, unable to repay their payment obligations, hedge funds threaten to sell off shares. Might affect the company’s solvency and ability to pay off bond holders. Suspended.

6. Oriental century – Subsidiary of Raffles education. This is the most recent case where s-shares are involved. CEO substantially inflated sales and cash balances and had diverted unspecified sums to an interested party. There are fictitious accounting and related records, thus leading everyone to believe that the cash they had were in existence. Raffles education shares, who held 29% of oriental century, are halted from trading now. Oriental century shares are suspended from trading. Read more…