Real Gold 0246.HK

Here's another fetid diseased company listed on the HKEX, (Charles Li, where are you?). Oh yes, the auditor is Deloitte.

"Wu Ruilin, the controlling shareholder of Inner Mongolian miner Real Gold Mining, pledged a key subsidiary of the listed company as security on loans for some of his private businesses.
Even though he does not own all of Real Gold or sit on its board, Wu signed documents that posted Fubon Industrial, the vehicle holding all of Real Gold's mines, as security for a 240 million yuan (HK$288 million) borrowing facility with Shanghai Pudong Development Bank last October.

The pledge, which was disclosed by Fubon in filings with the mainland's State Administration of Investments and Commerce (SAIC), meant Shanghai Pudong bank may have been able to seize Real Gold's mines if Wu's private companies - part of his telecommunications-to-mining conglomerate Cosun Group - failed to repay their loans."

Donald Tsang and HK Property

This dangerous clown decides he wants to maintain a free market economy yet only wants to partially destroy the property market.

"We will do more to slow it down," he said. "But we believe in the market, though. We don't want to do anything that would destroy the market completely."

Hkex's CEO Charles Li Delusional

Matters in the HKEX are obviously dire when the esteemed CEO of the whorehouse manages to utter gems like this...

"The U.S.-listed Chinese companies running into accounting problems would not have been able to list in Hong Kong, Hong Kong Exchanges and Clearing Ltd (0388.HK) Chief Executive Officer Charles Li told cable network CNBC on Friday."


The fool should take some time to read about the frauds in his whorehouse happening under his watch.... Ocean Grand, Fuji, Chaoda, First Natural, Akai, ...

He follows it up with more pungent garbage:

"He added that while the U.S. exchanges are disclosure-based, the Hong Kong Exchange is prescriptive, requiring companies to do certain things before they list"

How was the IPO application of Resourcehouse approved when it had never had profits?

Resourcehouse cancelled, Chaoda plumbing depths

As expected Resourcehouse IPO has been pulled.

Chaoda, despite the apologists and the frantic share buybacks by it's management continues to sink. It wouldn't be presumptuous to say ALL public Chinese companies are fraudulent, and US companies would have a certain degree, however the level of fraud in Chinese companies is high. When investing in China, assume there is fraud and check the Margin of Safety:

- Is it a large enough company to garner enough attention from the government?
- Will management fraud, result in bullets to their heads?
- Will the company survive such fraud?

The list of Chinese companies that have been decimated by fraud with the management escaping scott free is long and getting longer... First Natural Holdings, Fuji, China Forestry, Yunan Green-Land, ..

Life is cheap in HK

An airline pilot. Leung Chiu-yu (Cathay Pacific) who killed a four-year-old boy on a pedestrian crossing was fined HK$4,000 yesterday.

Judge: Kevin Browne

The HKex whorehouse

Compromising what little integrity the HK market has by exempting Resourcehouse which has never made a profit (probably never will) from it's own rules...

Under rule 8.05(1)(a), in order to meet the existing profit test, a new applicant must have an adequate trading record. This means that an applicant, or its group (excluding any associated companies and other entities whose results are recorded in the applicant’s financial statements using the equity method of accounting), as the case may be, must satisfy the following requirement:
“a trading record of not less than three financial years (see rule 4.04) during which the profit attributable to shareholders must, in respect of the most recent year, be not less than HK$20,000,000 and, in respect of the two preceding years, be in aggregate not less than HK$30,000,000. The profit mentioned above should exclude any income or loss of the issuer, or its group, generated by activities outside the ordinary and usual course of its business;”

Resource house drops IPO price 30%

From $4.48~$4.93 to $3.45

Will be surprising if it's fully subscribed. Expect a 15% drop on open. A good short.