China garbage companies on the Singapore exchange

Chinese comedy...

China Gaoxian Fibre Fabric Holdings is the latest Singapore-listed Chinese firm to report accounting inconsistencies. The Zhejiang-based maker of polyester yarn said last month its auditors at PricewaterhouseCoopers discovered the company's bank balance should be less than a tenth of the 1.1 billion yuan (HK$1.32 billion) it reported in its earnings."The exchange's sanctions are limited to reprimand, suspension and delisting," DMG's Tan said. "A share suspension is very frustrating for investors and they're held hostage. In a delisting, they could be staring at negative returns."In the case of FerroChina, shareholders lost their entire investment when the steelmaker was forced to delist in March 2010 after being suspended for over a year. The company, which hired Merrill Lynch in April 2008 as an adviser, defaulted on loans in October of that year, weeks after reporting quarterly net income had tripled.Other stocks that have been suspended include Sino Techfibre, which said a fire destroyed its financial records after reporting accounting flaws, and China Sun Bio-Chem Technology Group, which said a truck transporting its accounting records was stolen.