Photo by kevindooley

Sino Environment Technology is a S-Chip whose trading has been suspended since September this year.

I seldom write about Singapore listed China stocks as I don’t have any personal interest in them. The Confession of a S-Chip CEO email that I read the other day rekindled my interest in this topic so I thought I will post some updates of the latest S-Chip scandal that is going on involving Sino Environment.

Signs of irregularities for Sino Environment first appeared in March this year when it was discovered that their CEO, Sun Jiangrong, had defaulted on his personal loan of S$120 million. This would usually not be a direct problem of the company, but the CEO in this case had pledged his own shares in Sino Environment as collateral for the personal loan.

This was actually a smart way of monetizing one’s own shares without actually selling them. Yet, no disclosure of the pledge of shares was needed to be made to SGX at the point when the loan was taken. Read more…