TWO former senior employees of UOB Kay Hian Private Limited (UOBKH) were charged on Wednesday for allegedly lying to the Monetary Authority of Singapore (MAS) in relation to reports on a then Catalist aspirant. Lan Kang Ming, 38, and Wee Toon Lee, 34, each face three charges of providing MAS with false information in October 2018 in relation to due diligence reports on an unidentified company applying to list on the Catalist board of the Singapore Exchange. MAS said in a media statement on Wednesday that it was performing an onsite inspection of UOBKH between June and August 2018, to assess the latter's controls, policies and procedures in relation to its role as an issue manager for Initial Public Offering (IPOs). During the examination, Lan and Wee were said to have provided different versions of a due diligence report relating to background checks on a company applying to be listed on the Catalist board of the Singapore Exchange. UOBKH had acted as the issue manager
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An investigation into stock market manipulation in China is spurring concern of further losses for shares of smaller companies after a benchmark gauge plunged by the most in a year.
Bloomberg
23 December 2014
An investigation into stock market manipulation in China is spurring concern of further losses for shares of smaller companies after a benchmark gauge plunged by the most in a year.
The China Securities Regulatory Commission is probing companies and individuals involved in suspected market manipulation on 18 stocks and has set up a task force, the regulator said in a Dec 19 statement on its microblog, citing an unnamed spokesman. Most of these stocks are small companies listed in Shenzhen, according to the statement.
The ChiNext index, which tracks smaller companies, slid 4.9 per cent on Monday, the most since Dec 2, 2013. The Shenzhen Composite Index fell 3.6 per cent. At least a dozen of stocks plunged by the daily limit of 10 per cent.
“Investors should be wary of companies with weak fundamentals, especially after reports that the regulator is going to crack down on stock manipulation,” Zhang Yanbing, an analyst at Zheshang Securities Co, said in Shanghai on Monday.
The securities regulator has joined state media in warning investors of the risks of a reversal after the Shanghai Composite Index’s world-beating rally in the past month. Investors must consider risks while putting money into stocks, the CSRC warned earlier this month after a buying spree drove daily stock trading turnover above 1 trillion yuan (S$212 billion) for the first time.
The rush to pile into the rally in Shanghai has become so fevered that many investors are passing over identical shares that are trading more than 10 per cent cheaper in Hong Kong. The surge in stocks is also drawing out skeptics who say the gains are amplified by borrowed money and don’t reflect the nation’s economic fundamentals. China’s economy is forecast to grow this year at the slowest pace since 1990.
While market manipulation is showing some new characteristics this year, the practice involving groups of investors pumping up prices of certain shares and selling them in a short time “is making a comeback”, the CSRC said in the statement.
“Market manipulation severely damages the principal of being fair, righteous and open,” the regulator said. “It also hurts the interests of investors and is one of the common factors that trigger systematic risks in the market.” Two calls to the CSRC spokesman’s office after regular business hours went unanswered.
The ChiNext, dominated by technology, drug and alternative-energy shares, has rallied 113 per cent since the start of last year. The index of 100 stocks trades at 33 times projected 12-month earnings, compared with 11.7 times for the Shanghai Composite, according to data compiled by Bloomberg. The ChiNext was created in 2009 as an alternative for smaller companies seeking to raise funds and has fewer listing requirements than the two main boards in Shanghai and Shenzhen.
Cloud Live Technology Group, Shanxi Baiyuan Trousers Chain Management and Shandong Xingmin Wheel, which were among the 18 companies cited in the CSRC statement, slumped 10 per cent on Monday. Leshi Internet Information & Technology, the fourth-biggest stock in the ChiNext, which wasn’t cited by the CSRC, plunged 10 per cent for its biggest loss since July 17. The stock has tripled since the start of last year.
“Reports that the regulator is cracking down on stock manipulation is impacting stocks that rose too much earlier, especially the small caps, so you see the ChiNext slumping today,” said Mao Sheng, an analyst at Huaxi Securities Co.