Sinotronics 1195, heavy action

219m shares out of the 559m issued transacted.

The reason became apparent with the filing made by Union Day Group Ltd/Sze Ming Yee at close, they have increased their position to just under 400m shares to 71.49%.

The plot thickens.

SINOTRONICS01195.HK ( Electronics and Electrical Product... ) Delayed Quote1 2009-11-25 16:01

News

Last 0.415 MonitorPortfolio Chg 0.140 Bid 0.420 High 0.590 Open 0.450 Volume 219.40M Chg(%) 50.909% Ask 0.425 Low 0.400 Prev Close 0.275 Turnover 107.80M

Chinese IPOs, China Zhongwang Holdings

IPOs are generally a scam perpetuated by the founders and their investment bank backers. The Chinese IPOs are hot steaming dumplings served with fillings of faeces to the public:

"Mainland aluminium producer China Zhongwang Holdings has instructed accounting firm Ernst & Young to independently review its initial public offering prospectus following allegations that the firm falsified information about its customer base in the share-offer document.

Zhongwang raised HK$9.8 billion in its May flotation, becoming the first company to obtain over US$1 billion from investors on any global stock market for nine months. The fund-raising propelled Liu Zhongtian , the Liaoning-based firm's founder and chairman, to 10th place on the Hurun rich list, which estimated his personal wealth at 28 billion yuan (HK$31.8 billion).

But on September 14, the mainland newspaper China Economic Observer claimed to have found that some customers named in Zhongwang's IPO prospectus did not buy from the company last year.
"

But hold on!! We have the fox counting the chickens... the documentation will be in a suitably altered state. Nothing to see here. Move on.

"The aluminium firm yesterday told the Hong Kong stock exchange it had appointed a "big four" accountant "to conduct [an] independent review on the group's sales transactions with the major 10 customers during the period from 1 January 2008 to 30 June 2009 and documentations of income taxes for the financial year ended 31 December 2008".

People close to the company with knowledge of the matter confirmed the auditor was Ernst & Young. They said Zhongwang had not decided whether to make the findings public."

China business model: get bank loan, buy stock

Stocks rally linked to record bank loans
(1 hr ago)
Mainland companies may be using record bank lending to invest in stocks, fueling a rally that has made the benchmark Shanghai Composite Index the world's best performer this year, according to Shenyin & Wanguo Securities.

As much as 660 billion yuan (HK$747.91 billion) may have been converted by companies into term deposits or used to buy equities, Li Huiyong, Shanghai-based analyst at Shenyin Wanguo, said, citing money supply figures.

Mainland banks lent a record 1.62 trillion yuan last month as part of a government drive to stimulate the world's third-largest economy, while M2, the broadest measure of money supply, climbed 18.8 percent from a year earlier. The Shanghai Composite has surged 29 percent since the start of the year, compared with a 10 percent decline in the MSCI World Index.

Part of the liquidity flowing into the stock market could be from companies using borrowed funds to invest in the stock market instead of working requirements, said Li. The brokerage was voted the best in the country for research by the national pension fund, China's largest investor.

The jump in new loans was twice the record set a year earlier. The biggest proportion of new lending, 39 percent, was through discounted bills, which supply working capital. Medium and long-term corporate loans accounted for 32 percent.

Companies are reluctant to increase production amid a slowdown in demand and some may have diverted funds meant for expansion into the stock market to chase higher returns, said Li.

BLOOMBERG    

Chinese whales in Macau

Study done on the Chinese high rollers in Macau. The same probability impaired ones may have managed First Natural Food (1076).

The whales end up getting harpooned..

"According to a study of 99 high rollers from mainland China whose gambling habits propelled them into the headlines, 44 per cent were either sentenced to death, murdered, committed suicide or were serving long jail sentences after committing crimes to fund their visits. Zeng Zhonglu, a professor at the Macau Polytechnic Institute, found 15 of the gamblers were sentenced to death, seven committed suicide or were "killed by others", two were given a death sentence reprieve and 20 were serving long jail sentences."