China Gaoxian turn out to be the third company listed on the SGX after China Hong Xing and Hongwei to be investigated for accounting irregularities.

I hope non of my friends and readers out there were suck into this.

Disclosure: I was vested in Hongwei in the past.

The amazing thing is: China Gaoxian managed to raise $223.8m (net proceeds) in new capital via a KDR issue (30m KDRs; or 600m new shares) in January 2011!

Right now the situation is that

1. China firms seem to think that listing in Hong Kong is a difficult proposition. The rules are more stringent.
2. If they want to con money the best place seems to be SGX.
3. SGX have a reputation of having lax rules because they want to increase the number of listings and a reputation of a leading exchange.
4. After they list in Singapore, they use this reputation and credentials ...