Concentration of small manufacturers.. hurt.

Third troubled Deloitte client in months

Cockroaches everywhere in the kitchen. From today's SCMP.

Eric Ng 
Jun 26, 2012
      


Trony Solar is the third mainland private enterprise client of auditor Deloitte Touche Tohmatsu to have run into accounting disclosure troubles in three months.
Trading of children's wear retailer Boshiwa International's shares has been halted since March 15, after Deloitte resigned as its auditor, sending its share price down by over a third. It was listed in September 2010.




Trading of Daqing Dairy has also been suspended, since March 22, after Deloitte resigned, citing an acknowledgement by Daqing management that certain transactions were fraudulent and difficulties in accessing the local branch of one of its banks. It was listed 21 months ago.


In October, Deloitte quit as Real Gold Mining's auditor following several corporate governance breaches, citing the miner's failure to disclose information that was "highly material" to its 2010 financial statements, and saying its 2010 earnings report was not reliable. Real Gold was listed in February 2009, and trading has been halted since May last year.


A Deloitte China spokesman said the fact Boshiwa, Daqing and Trony had run into their own "unique" accounting difficulties was "a coincidence". He said they accounted for only a "minuscule proportion" of the firm's listed audit client portfoli...

Richly Field China Development Chairman Arrested

The Chairman makes the rookie mistake of crossing the border into HK...

"The board (the “Board”) of directors (the “Directors”) of Richly Field China Development Limited (the 
“Company”, and together with its subsidiaries, the “Group”) announces that in the afternoon of 24 April 
2012, it was informed that Mr. He Guang (“Mr. He”), the Chairman of the Company and an executive 
Director, was arrested by the Commercial Crime Bureau of the Hong Kong Police (“CCB”) in connection 
with an investigation into a suspected offence in relation to knowingly publishing a written statement or 
account of a company about its affairs, which is or maybe misleading, false or deceptive in a material 
particular under Section 21 of the Theft Ordinance (the “Investigation”). Mr. He has been released on 
bail and has not been charged. The Company was also required to provide certain financial information 
and documents of the Group to CCB in relation to the Investigation. Save as disclosed above, the 
Company is not aware of any other employees, directors or related parties of the Company having been 
requested to assist the Investigation."

Where the Fook Woo's management

Management disappears with books...

PCCW (008) Bugging calls?

This can't be true... in the local news.

PCCW being a carrier will have access to ALL calls on their network, even calls over the GSM network as encryption is only over the air. End to end encryption is required if secure communications is required.


"Sunday, Ming Pao Daily
Telecoms operator PCCW (SEHK: 0008) provides anti-eavesdropping service


Telecoms operator PCCW has an anti-eavesdropping service team. Reporters inquired about the service and a staff member revealed the service team, consisting of more than 10 people, was founded more than 10 years ago, originally to serve boss Richard Li Tzar-kai, who needed anti-eavesdropping measures to protect big business deals. The team was later expanded and the service offered to clients such as multinational companies, real-estate developers, casinos and media companies. The staff member said people who wanted to avoid being victims of eavesdropping should use low-end, "non-smart" mobile phones."

HKex investigating some China companies

This article says 3 "private" companies are being investigated and goes on to mention Chaoda, Realgold, China Forestry and Boshiwa,  but doesn't definitively name which companies are being investigated. There is no mention at all on HKex's web site.

It's a start but three companies is a drop in the ocean of fraud on the HKex (where's First Natural?) and it remains to be seen what real penalties can be imposed by the HKex on the mainland based directors who just thumb their noses at the HKex across the border and disappear with the loot.

HKEx goes after mainland firms accused of fraud

SFC proposes to jail banking scum

for misleading IPO material... but this means all the bankers end up in jail?

Now they need to do something, anything, about the vast majority of the Chinese companies listed on the HKex which are blatant frauds.

"Bankers and brokers may be jailed if they fail to ensure the accuracy of listing prospectuses produced by companies they are sponsoring to join the stock market.
Allocating criminal liability for such misdeeds is part of the Securities and Futures Commission's plan to improve market quality in light of recent scandals that have tarnished the image of the local bourse.




Two sources acquainted with details told the South China Morning Post (SEHK: 0583, announcements, news) that the SFC is expected to propose in a consultation paper that sponsors follow tougher due diligence requirements and should face harsher penalties if they fail to check misleading information in listing prospectuses."