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hpong5 Master	26-Mar-2011 20:58        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	I think they really need the funds for expansion. Somehow managed to pump until 0.40 plus. At least they never run road when their share price is at its peak. Debut lao sai only the BBs sellers themselves know. rotijai      ( Date: 26-Mar-2011 20:24) Posted: cgx already trapped many several times.. tat time during the KRX debut, the TA looked good also.. i have a feeling tat it's a scandal/scam.. but i might be wrong hpong5      ( Date: 26-Mar-2011 19:02) Posted: Audit issues nothing to do with technical charts pattern. The chart actually from a technical point looks safe for entry. Too bad the audit issues brought it down further
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rotijai Supreme	26-Mar-2011 20:24        rotijai About Contact  Quote this Post!
x 0   x 0  Alert Admin	cgx already trapped many several times.. tat time during the KRX debut, the TA looked good also.. i have a feeling tat it's a scandal/scam.. but i might be wrong hpong5      ( Date: 26-Mar-2011 19:02) Posted: Audit issues nothing to do with technical charts pattern. The chart actually from a technical point looks safe for entry. Too bad the audit issues brought it down further. stan19      ( Date: 26-Mar-2011 18:53) Posted: FA?... mind to elaborate
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hpong5 Master	26-Mar-2011 19:02        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Audit issues nothing to do with technical charts pattern. The chart actually from a technical point looks safe for entry. Too bad the audit issues brought it down further. stan19      ( Date: 26-Mar-2011 18:53) Posted: FA?... mind to elaborate? hpong5      ( Date: 26-Mar-2011 18:33) Posted: Now is panic selling. More of FA a concern
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stan19 Member	26-Mar-2011 18:53        stan19 About Contact  Quote this Post!
x 0   x 0  Alert Admin	FA?... mind to elaborate? hpong5      ( Date: 26-Mar-2011 18:33) Posted: Now is panic selling. More of FA a concern. Bintang      ( Date: 26-Mar-2011 17:20) Posted: Investors must to take profits or cut losses when DIs were negatively crossed n ADX fell sharply from 56 0n 25 Jan2011 , then the share price was between 34 to 41 cents . This level was below the stop loss protection from the peak at 47 cents . Therefore all counters with open positions must have stop loss protections
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hpong5 Master	26-Mar-2011 18:40        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Just a wild guess...should resume trading by mid april. :p
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hpong5 Master	26-Mar-2011 18:33        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Now is panic selling. More of FA a concern. Bintang      ( Date: 26-Mar-2011 17:20) Posted: Investors must to take profits or cut losses when DIs were negatively crossed n ADX fell sharply from 56 0n 25 Jan2011 , then the share price was between 34 to 41 cents . This level was below the stop loss protection from the peak at 47 cents . Therefore all counters with open positions must have stop loss protections . Bintang      ( Date: 17-Feb-2011 11:45) Posted: ChinaGaoxian fell sharply after forming a weekly shooting star on 07 Jan , ADX has peaked at 56 on 13 Jan . It came down rapidly on 25 Jan when daily RSI shown the divergence . And at the same time , DIs made a negative cross over . All these signals showed its uptrend had ended , n so was the starting of the downtrend . The strong support is now at 23.5 cents . There are too many resistances ahead , sell into strength when there is a technical rebounce
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Bintang Elite	26-Mar-2011 17:20        Bintang About Contact  Quote this Post! Style: Technical   Mood:
x 0   x 0  Alert Admin	Investors must to take profits or cut losses when DIs were negatively crossed n ADX fell sharply from 56 0n 25 Jan2011 , then the share price was between 34 to 41 cents . This level was below the stop loss protection from the peak at 47 cents . Therefore all counters with open positions must have stop loss protections . Bintang      ( Date: 17-Feb-2011 11:45) Posted: ChinaGaoxian fell sharply after forming a weekly shooting star on 07 Jan , ADX has peaked at 56 on 13 Jan . It came down rapidly on 25 Jan when daily RSI shown the divergence . And at the same time , DIs made a negative cross over . All these signals showed its uptrend had ended , n so was the starting of the downtrend . The strong support is now at 23.5 cents . There are too many resistances ahead , sell into strength when there is a technical rebounce . Bon3260      ( Date: 17-Feb-2011 08:08) Posted: I repeat... Sell ChinaGaoxian when rebounce... ('',) Note: ChinaGaoxian as @ 16-Feb-2011 close 0.270
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hpong5 Master	26-Mar-2011 16:23        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Yup, that's right. Most important is the major shareholders like the ceo never dump shares and company is not sitting on huge debt, sales are good and improving, the fundamentals of the company should be fine. Like i say, ceo and other major shareholders never reduce their stake besides earlier that time shows that they are doing serious business. Is unfortunate that the audit issues caused the selloff and suspension as BBs are also scared. But one thing for sure, they have sold or shorted on leaked information. It's safer to sell first for them as i believe they must have collected a lot when the price dropped from 0.40 to 0.22. Suay suay, they heard this kind of leaks of course sell and sell leading to the sharp price plunge coupled with super volume. stan19      ( Date: 26-Mar-2011 13:01) Posted: even they sell to public in open market... they will announce changed of holding? hpong5      ( Date: 26-Mar-2011 12:34) Posted: Should have. The easier way is to check on the SGX's Companies' Announcement page for any change in the substantial shareholders' shareholding. Maybe you can check from the date they listed in SGX till now
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medivh Elite	26-Mar-2011 16:19        medivh About Contact  Quote this Post!
x 0   x 0  Alert Admin	From the posts, I can see many here are vested in this counter and hoping for positive results and pulling out with hopefully postive cash invested. This is sad but true: 1) Don't wait for it to rise back to the level you have bought. If you don't have a cut-loss limit, you should think seriously about it now. (0 % return is really bad.. ) 2) The CEO and all his friends are still humans. IF they have reduce their holdings, things are not as rosy as you hope it will be. 3) Did you know the volume before the halt on monday? 139 million shares changed hands.. for a penny stock this is note worthy.. Who have unloaded till 19c? No need to guess.. see the numbers and they will give you a clear indicator.. I doubt there are enough scripts for those CFDs shorties. So you should know what I am trying to say here. All the best ^^
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medivh Elite	26-Mar-2011 16:11        medivh About Contact  Quote this Post!
x 0   x 0  Alert Admin	Chinese to English translation   Wang Yang-fat Chinese subsidiaries can not be determined because of the bank balance and the beginning of China suspended high-fiber (China Gaoxian), without shareholder approval yesterday Zaibao put money into an unknown number of upstream projects. Auditors are expanding the scope of the audit will confirm the time of investment, amount and other details. The company is preparing to hold a special shareholders meeting in April to seek shareholder approval to expand the upstream project. However, according to the SGX listing regulations, the company must first obtain shareholder approval before it can carry out such projects. Fiber of the Audit Committee of China yesterday, in reply to the Korea Exchange (KRX)'s inquiry, the disclosure requirements of the above shares were suspended the day before yesterday when it unspecified reasons. China's fiber requirements of the Audit Committee the day before the stock suspension, only said that because the auditor can not confirm or prove that the two Chinese subsidiaries of Chinese fiber bank balance. 2009 listed in SGX fiber in China, in January this year, has just issued depositary receipts in the Korea Exchange (KDR), but the audit to obtain a second opinion Exchange does not guarantee the financial health of any company or business supervision. China fiber plunged Monday as its shares 24% (down 6 points, the stock closed at 0.19 yuan) and the surge in trading volume reached 100 million 4,000 million, who were asked SGX. This requires its shares suspended from trading on Tuesday, pending the release of information. But it did not also suspend trading of its ADS Korea that the Korean depositary receipts fell 15% on Tuesday, at 4,165 won (per 1 ADS = 20 shares). This result lead to market watchers speculated that have been long for fear of a similar chip stocks in the accounts of other issues hurriedly selling. Sure enough, on Thursday after China's fiber to disclose the bank balance, and further requested suspension. It said on Thursday that auditors Ernst & Young China, high-fiber (Ernst & Young) is the results of the audit last year, you can not confirm or prove that the Chinese high-fiber two Chinese subsidiaries of bank deposits. For China and Hong Kong Chinese subsidiary, Zhejiang and Fujian Industrial Co., Ltd. Polyester Fiber Textile Co., Ltd. New Warwick. The company's audit committee yesterday, the KSE reply to whether the funds have been invested for the expansion project at the upper reaches of the problems is that the China Executive Chairman and Chief Executive Cao Xiangbin fiber has informed the Board, although not yet approved by the shareholders that the project group The funds have been used for the upstream expansion project (raw polyester production project). But it did not disclose the upstream projects have been put in how many funds. Fiber of the Audit Committee of China only in the reply said, auditors are expanding the scope of the audit to verify that the capital investment of time, amount and other details. hpong5      ( Date: 26-Mar-2011 16:06) Posted: 中 国 高 纤 未 经 股 东 批 准 擅 将 资 金 投 入 上 游 项 目 （ 2011-03-26） 早 报 导 读 [新 加 坡 大 选 ] 三 巴 旺 竞 选 团 队 或 出 现 两 新 脸 孔 [日 本 大 地 震 ] 辐 射 尘 已 达 美 欧 将 绕 地 球 一 周 [利 比 亚 局 势 ] 从 "禁 飞 "看 奥 巴 马 "玩 火 " [中 国 早 点 ] 台 湾 新 政 治 文 化 起 跑 ？ 联 合 早 报 网 招 聘 Freelance网 络 新 闻 编 辑 ● 王 阳 发 　 　 因 无 法 确 定 中 国 子 公 司 银 行 存 款 余 额 而 刚 开 始 停 牌 的 中 国 高 纤 （ China Gaoxian） ， 昨 日 再 爆 未 经 股 东 批 准 便 把 为 数 不 明 的 资 金 投 入 上 游 项 目 。 审 计 师 正 扩 大 审 计 范 围 ， 将 确 认 有 关 资 金 投 入 的 时 间 、 数 额 以 及 其 他 详 情 。 　 　 该 公 司 正 准 备 在 4月 召 开 特 别 股 东 大 会 ， 寻 求 股 东 批 准 上 游 扩 充 项 目 。 但 按 新 交 所 挂 牌 条 例 ， 该 公 司 必 须 先 获 得 股 东 批 准 ， 才 能 够 进 行 这 类 项 目 。 　 　 中 国 高 纤 的 审 计 委 员 会 昨 日 是 在 答 复 韩 国 交 易 所 （ KRX） 的 询 问 时 ， 披 露 以 上 它 前 天 要 求 股 票 停 牌 时 未 说 明 的 原 因 。 中 国 高 纤 的 审 计 委 员 会 前 天 要 求 股 票 停 牌 时 ， 只 表 示 因 为 审 计 师 无 法 确 认 或 证 明 中 国 高 纤 的 两 家 中 国 子 公 司 的 银 行 存 款 余 额 。 　 　 2009年 在 新 交 所 挂 牌 上 市 的 中 国 高 纤 ， 今 年 1月 刚 在 韩 国 交 易 所 发 行 存 托 凭 证 （ KDR） ， 但 获 得 第 二 个 交 易 所 的 审 核 看 来 并 不 能 保 障 任 何 公 司 的 财 务 健 康 或 企 业 监 管 水 平 。 　 　 中 国 高 纤 本 周 一 由 于 其 股 票 暴 跌 24％ （ 跌 6分 ， 股 价 收 报 0.19元 ） 而 且 交 易 量 飙 升 达 1亿 4000万 股 ， 而 遭 新 交 所 询 问 。 它 这 才 要 求 股 票 周 二 开 始 暂 停 交 易 ， 以 待 发 布 消 息 。 但 它 并 没 同 时 暂 停 其 韩 国 存 托 凭 证 的 交 易 ， 以 致 该 韩 国 存 托 凭 证 的 价 格 在 周 二 大 跌 15％ ， 报 4165韩 元 （ 每 1存 托 凭 证 等 于 20股 ） 。 　 　 这 因 此 导 致 市 场 观 察 者 推 测 ， 已 有 人 因 担 心 出 现 类 似 其 他 龙 筹 股 的 账 目 问 题 而 慌 忙 抛 售 。 中 国 高 纤 之 后 在 周 四 果 然 透 露 有 关 的 银 行 存 款 余 额 问 题 ， 并 进 一 步 要 求 停 牌 。 　 　 它 周 四 表 示 ， 中 国 高 纤 的 审 计 师 安 永 （ Ernst & Young） 是 在 审 计 去 年 业 绩 时 ， 无 法 确 认 或 证 明 中 国 高 纤 两 家 中 国 子 公 司 的 银 行 存 款 余 额 。 有 关 中 国 子 公 司 是 浙 江 华 港 涤 纶 实 业 有 限 公 司 及 福 建 新 华 威 化 纤 染 织 有 限 公 司 。 　 　 该 公 司 的 审 计 委 员 会 在 昨 日 答 复 韩 交 所 针 对 资 金 是 否 已 投 入 于 上 游 扩 充 项 目 的 问 题 时 则 透 露 ， 中 国 高 纤 执 行 主 席 兼 总 裁 曹 祥 彬 已 通 知 审 计 委 员 会 ， 虽 然 说 股 东 还 没 批 准 进 行 该 项 目 ， 集 团 的 资 金 已 经 用 于 该 上 游 扩 充 项 目 （ 原 材 料 聚 酯 生 产 项 目 ） 。 　 　 但 它 并 没 透 露 已 投 入 于 该 上 游 项 目 的 资 金 究 竟 多 少 。 中 国 高 纤 的 审 计 委 员 会 在 答 复 中 仅 表 示 ， 审 计 师 正 扩 大 审 计 范 围 ， 以 确 认 有 关 资 金 投 入 的 时 间 、 数 额 以 及 其 他 详 情 。
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hpong5 Master	26-Mar-2011 16:06        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	中 国 高 纤 未 经 股 东 批 准 擅 将 资 金 投 入 上 游 项 目 （ 2011-03-26） 早 报 导 读 [新 加 坡 大 选 ] 三 巴 旺 竞 选 团 队 或 出 现 两 新 脸 孔 [日 本 大 地 震 ] 辐 射 尘 已 达 美 欧 将 绕 地 球 一 周 [利 比 亚 局 势 ] 从 "禁 飞 "看 奥 巴 马 "玩 火 " [中 国 早 点 ] 台 湾 新 政 治 文 化 起 跑 ？ 联 合 早 报 网 招 聘 Freelance网 络 新 闻 编 辑 ● 王 阳 发 　 　 因 无 法 确 定 中 国 子 公 司 银 行 存 款 余 额 而 刚 开 始 停 牌 的 中 国 高 纤 （ China Gaoxian） ， 昨 日 再 爆 未 经 股 东 批 准 便 把 为 数 不 明 的 资 金 投 入 上 游 项 目 。 审 计 师 正 扩 大 审 计 范 围 ， 将 确 认 有 关 资 金 投 入 的 时 间 、 数 额 以 及 其 他 详 情 。 　 　 该 公 司 正 准 备 在 4月 召 开 特 别 股 东 大 会 ， 寻 求 股 东 批 准 上 游 扩 充 项 目 。 但 按 新 交 所 挂 牌 条 例 ， 该 公 司 必 须 先 获 得 股 东 批 准 ， 才 能 够 进 行 这 类 项 目 。 　 　 中 国 高 纤 的 审 计 委 员 会 昨 日 是 在 答 复 韩 国 交 易 所 （ KRX） 的 询 问 时 ， 披 露 以 上 它 前 天 要 求 股 票 停 牌 时 未 说 明 的 原 因 。 中 国 高 纤 的 审 计 委 员 会 前 天 要 求 股 票 停 牌 时 ， 只 表 示 因 为 审 计 师 无 法 确 认 或 证 明 中 国 高 纤 的 两 家 中 国 子 公 司 的 银 行 存 款 余 额 。 　 　 2009年 在 新 交 所 挂 牌 上 市 的 中 国 高 纤 ， 今 年 1月 刚 在 韩 国 交 易 所 发 行 存 托 凭 证 （ KDR） ， 但 获 得 第 二 个 交 易 所 的 审 核 看 来 并 不 能 保 障 任 何 公 司 的 财 务 健 康 或 企 业 监 管 水 平 。 　 　 中 国 高 纤 本 周 一 由 于 其 股 票 暴 跌 24％ （ 跌 6分 ， 股 价 收 报 0.19元 ） 而 且 交 易 量 飙 升 达 1亿 4000万 股 ， 而 遭 新 交 所 询 问 。 它 这 才 要 求 股 票 周 二 开 始 暂 停 交 易 ， 以 待 发 布 消 息 。 但 它 并 没 同 时 暂 停 其 韩 国 存 托 凭 证 的 交 易 ， 以 致 该 韩 国 存 托 凭 证 的 价 格 在 周 二 大 跌 15％ ， 报 4165韩 元 （ 每 1存 托 凭 证 等 于 20股 ） 。 　 　 这 因 此 导 致 市 场 观 察 者 推 测 ， 已 有 人 因 担 心 出 现 类 似 其 他 龙 筹 股 的 账 目 问 题 而 慌 忙 抛 售 。 中 国 高 纤 之 后 在 周 四 果 然 透 露 有 关 的 银 行 存 款 余 额 问 题 ， 并 进 一 步 要 求 停 牌 。 　 　 它 周 四 表 示 ， 中 国 高 纤 的 审 计 师 安 永 （ Ernst & Young） 是 在 审 计 去 年 业 绩 时 ， 无 法 确 认 或 证 明 中 国 高 纤 两 家 中 国 子 公 司 的 银 行 存 款 余 额 。 有 关 中 国 子 公 司 是 浙 江 华 港 涤 纶 实 业 有 限 公 司 及 福 建 新 华 威 化 纤 染 织 有 限 公 司 。 　 　 该 公 司 的 审 计 委 员 会 在 昨 日 答 复 韩 交 所 针 对 资 金 是 否 已 投 入 于 上 游 扩 充 项 目 的 问 题 时 则 透 露 ， 中 国 高 纤 执 行 主 席 兼 总 裁 曹 祥 彬 已 通 知 审 计 委 员 会 ， 虽 然 说 股 东 还 没 批 准 进 行 该 项 目 ， 集 团 的 资 金 已 经 用 于 该 上 游 扩 充 项 目 （ 原 材 料 聚 酯 生 产 项 目 ） 。 　 　 但 它 并 没 透 露 已 投 入 于 该 上 游 项 目 的 资 金 究 竟 多 少 。 中 国 高 纤 的 审 计 委 员 会 在 答 复 中 仅 表 示 ， 审 计 师 正 扩 大 审 计 范 围 ， 以 确 认 有 关 资 金 投 入 的 时 间 、 数 额 以 及 其 他 详 情 。
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hpong5 Master	26-Mar-2011 15:51        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	That writer is comparing FerroChina's huge debt with Gaoxian's peanuts debt. A "bit" poor judgement of that writer.
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zeusleo Member	26-Mar-2011 15:13        zeusleo About Contact  Quote this Post!
x 0   x 0  Alert Admin	For those who wants to know who is the major shareholder, please refer to their last year annual report. Top 20 shareholders constitute 86% of which their CEO owns more than 50% of his own company and following carry luck. But Carry Luck reduced significantly. So think he still holding alot. hpong5      ( Date: 26-Mar-2011 12:34) Posted: Should have. The easier way is to check on the SGX's Companies' Announcement page for any change in the substantial shareholders' shareholding. Maybe you can check from the date they listed in SGX till now. stan19      ( Date: 26-Mar-2011 12:30) Posted: anyway to check whos the current major shareholder? eg. the company name etc...
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stan19 Member	26-Mar-2011 15:08        stan19 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Is tat  part of the condition to appoint e& y as auditor  for them to list  on sgx? As what KRX query, why they able to expand new production factory,acquiring land  without going thru meeting?   rabbitfoot      ( Date: 26-Mar-2011 13:34) Posted: My final take on CGX : 1. Why did CGX, Hongxing and the other H chose world no. 1   E& Y as their Auditor, unlike lesser known auditor engaged by other S-chips ,  knowing that they will fully checked in the first place ?  2.  CGX has ID Chan (ex-SGX listing top guy) to head their audit committee and giving all the answers to SGX, KRX queries. 3. Coming Apr, EGM to be held to approve new Upstream factory. CGX said money already put in. Plot of land already acquired. If attend EGM, can see Chairman there. 4. Using ipo money, CGX bought hundereds & hundreds of sewing machines/kits delivered in phases last year. One investor even visited their factory just before CNY this year and saw them operating full swing. 5. Big boss selling shares just after ipo. Not unusual but common, as others also do it. Need money for own use. At least, not selling at  0.40.... I rest my case.
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james87 Veteran	26-Mar-2011 14:51        james87 About Contact  Quote this Post!
x 0   x 0  Alert Admin	How true.......before this incident.....so many analysts said gaoxian good ....gaoxian must buy....gaoxian all clear... zhixuen      ( Date: 26-Mar-2011 14:47) Posted: All of these analyst like to act like " 事 后 孔 明 " flyersummer      ( Date: 26-Mar-2011 10:03) Posted: Mar 26, 2011 NEWS ANALYSIS China Gaoxian scandal evokes chilling parallels Similarities with FerroChina scandal in 2008 a scary reminder to stay vigilant By Goh Eng Yeow, Senior Correspondent China Gaoxian founder Cao Xiangbin sold 60 million shares at the point of listing. IT MAY look like just another S-chip train wreck, but the accounting irregularities raised at textile maker China Gaoxian are far more worrying. While China Hongxing Sports and Hongwei Technologies, which both reported accounting problems last month, listed more than five years ago, China Gaoxian made its debut only 18 months ago. This makes this latest S-chip scandal all the more serious, because China Gaoxian listed six months after clean-up measures were implemented following a spate of earlier S-chip irregularities. As one of the biggest IPOs of 2009, China Gaoxian was supposed to flag an all-clear signal to investors that it was back to business as usual for S-chips. After all, its independent directors included Mr Philip Chan, a former listings head with the Singapore Exchange. In January, China Gaoxian rode high on a strong vote of investor confidence to raise $240 million from South Korean investors after getting its stock sponsored as a depository receipt listing in Seoul. So its trading suspension this week is a big blow to the already tarnished S-chip sector and may sound the death knell for similar fund-raising exercises by other S-chips in Seoul. It is also worth noting the interesting parallels between China Gaoxian and steel-coil maker FerroChina, which was suspended from trading more than two years ago. Just to jolt the memory, FerroChina was also riding high with investors when it suddenly closed shop in October 2008, purportedly because banks refused to roll-over its short-term loans. But as some traders noted, the warning signals had been there for years, if anyone had cared to look. Company insiders had been whittling down their stakes, selling about 155 million shares, or 18 per cent of the company, between 2005 and 2008. And as a company purportedly sitting on a huge cash hoard, it had short-term debts of 2.33 billion yuan, with banks taking literally everything - bank deposits, inventories, buildings - as collateral for their loans. Now take a look at China Gaoxian and one will notice more than a passing resemblance to FerroChina. The company's 2009 prospectus showed that executive chairman and founder Cao Xiangbin sold 60 million shares at the IPO issue price of 26 cents apiece at the point of listing. A year later when the lock-up period ended for major shareholders, Carry Luck, a company owned by one Mr Hong Rong Zhi, lost no time in selling out too. In just two days last September, Carry Luck sold 53 million shares at 19.5 cents apiece and another 25.1 million shares at 19 cents each - both well below the 26-cent listing price. The sales took Carry Luck's stake to 4.99 per cent from 10.42 per cent. Another telling sign: the company had raised $78.2 million from its IPO here in 2009 and another $223.8 million from selling 600 million new shares in Seoul in January. Yet, like FerroChina, it had behaved like a cash-strapped firm, asking customers to pay up in cash and drawing down on its bank credit lines. It was this contradiction that prompted the SGX to put a query to the company. In hindsight, investors should have asked why China Gaoxian needed to raise so much cash over such a short period if its growth was self-sustaining. And what happens to that huge sum now? Is it still in the company's coffers? And shouldn't a question have been asked about the huge sales of China Gaoxian stock by a major shareholder last September, at below the IPO issue price? It is strange that irregularities could surface at China Gaoxian with FerroChina scandal still fresh in investors' minds. And it is a chilling reminder to all investors to stay vigilant at all times. engyeow@sph.com.sg
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Vanpersie Member	26-Mar-2011 14:51        Vanpersie About Contact  Quote this Post!
x 0   x 0  Alert Admin	Quote " Yet, like FerroChina, it had behaved like a cash-strapped firm, asking customers to pay up in cash and drawing down on its bank credit lines. " This is what a elite can do. I am really amused. You mean you have got alot of cash, and you don't have to ask your customers to pay their outstandings... People like this joker sit in the office, write something by the books, but never make business sense... zhixuen      ( Date: 26-Mar-2011 14:47) Posted: All of these analyst like to act like " 事 后 孔 明 " flyersummer      ( Date: 26-Mar-2011 10:03) Posted: Mar 26, 2011 NEWS ANALYSIS China Gaoxian scandal evokes chilling parallels Similarities with FerroChina scandal in 2008 a scary reminder to stay vigilant By Goh Eng Yeow, Senior Correspondent China Gaoxian founder Cao Xiangbin sold 60 million shares at the point of listing. IT MAY look like just another S-chip train wreck, but the accounting irregularities raised at textile maker China Gaoxian are far more worrying. While China Hongxing Sports and Hongwei Technologies, which both reported accounting problems last month, listed more than five years ago, China Gaoxian made its debut only 18 months ago. This makes this latest S-chip scandal all the more serious, because China Gaoxian listed six months after clean-up measures were implemented following a spate of earlier S-chip irregularities. As one of the biggest IPOs of 2009, China Gaoxian was supposed to flag an all-clear signal to investors that it was back to business as usual for S-chips. After all, its independent directors included Mr Philip Chan, a former listings head with the Singapore Exchange. In January, China Gaoxian rode high on a strong vote of investor confidence to raise $240 million from South Korean investors after getting its stock sponsored as a depository receipt listing in Seoul. So its trading suspension this week is a big blow to the already tarnished S-chip sector and may sound the death knell for similar fund-raising exercises by other S-chips in Seoul. It is also worth noting the interesting parallels between China Gaoxian and steel-coil maker FerroChina, which was suspended from trading more than two years ago. Just to jolt the memory, FerroChina was also riding high with investors when it suddenly closed shop in October 2008, purportedly because banks refused to roll-over its short-term loans. But as some traders noted, the warning signals had been there for years, if anyone had cared to look. Company insiders had been whittling down their stakes, selling about 155 million shares, or 18 per cent of the company, between 2005 and 2008. And as a company purportedly sitting on a huge cash hoard, it had short-term debts of 2.33 billion yuan, with banks taking literally everything - bank deposits, inventories, buildings - as collateral for their loans. Now take a look at China Gaoxian and one will notice more than a passing resemblance to FerroChina. The company's 2009 prospectus showed that executive chairman and founder Cao Xiangbin sold 60 million shares at the IPO issue price of 26 cents apiece at the point of listing. A year later when the lock-up period ended for major shareholders, Carry Luck, a company owned by one Mr Hong Rong Zhi, lost no time in selling out too. In just two days last September, Carry Luck sold 53 million shares at 19.5 cents apiece and another 25.1 million shares at 19 cents each - both well below the 26-cent listing price. The sales took Carry Luck's stake to 4.99 per cent from 10.42 per cent. Another telling sign: the company had raised $78.2 million from its IPO here in 2009 and another $223.8 million from selling 600 million new shares in Seoul in January. Yet, like FerroChina, it had behaved like a cash-strapped firm, asking customers to pay up in cash and drawing down on its bank credit lines. It was this contradiction that prompted the SGX to put a query to the company. In hindsight, investors should have asked why China Gaoxian needed to raise so much cash over such a short period if its growth was self-sustaining. And what happens to that huge sum now? Is it still in the company's coffers? And shouldn't a question have been asked about the huge sales of China Gaoxian stock by a major shareholder last September, at below the IPO issue price? It is strange that irregularities could surface at China Gaoxian with FerroChina scandal still fresh in investors' minds. And it is a chilling reminder to all investors to stay vigilant at all times. engyeow@sph.com.sg
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zhixuen Veteran	26-Mar-2011 14:47        zhixuen About Contact  Quote this Post!
x 0   x 0  Alert Admin	All of these analyst like to act like " 事 后 孔 明 " flyersummer      ( Date: 26-Mar-2011 10:03) Posted: Mar 26, 2011 NEWS ANALYSIS China Gaoxian scandal evokes chilling parallels Similarities with FerroChina scandal in 2008 a scary reminder to stay vigilant By Goh Eng Yeow, Senior Correspondent China Gaoxian founder Cao Xiangbin sold 60 million shares at the point of listing. IT MAY look like just another S-chip train wreck, but the accounting irregularities raised at textile maker China Gaoxian are far more worrying. While China Hongxing Sports and Hongwei Technologies, which both reported accounting problems last month, listed more than five years ago, China Gaoxian made its debut only 18 months ago. This makes this latest S-chip scandal all the more serious, because China Gaoxian listed six months after clean-up measures were implemented following a spate of earlier S-chip irregularities. As one of the biggest IPOs of 2009, China Gaoxian was supposed to flag an all-clear signal to investors that it was back to business as usual for S-chips. After all, its independent directors included Mr Philip Chan, a former listings head with the Singapore Exchange. In January, China Gaoxian rode high on a strong vote of investor confidence to raise $240 million from South Korean investors after getting its stock sponsored as a depository receipt listing in Seoul. So its trading suspension this week is a big blow to the already tarnished S-chip sector and may sound the death knell for similar fund-raising exercises by other S-chips in Seoul. It is also worth noting the interesting parallels between China Gaoxian and steel-coil maker FerroChina, which was suspended from trading more than two years ago. Just to jolt the memory, FerroChina was also riding high with investors when it suddenly closed shop in October 2008, purportedly because banks refused to roll-over its short-term loans. But as some traders noted, the warning signals had been there for years, if anyone had cared to look. Company insiders had been whittling down their stakes, selling about 155 million shares, or 18 per cent of the company, between 2005 and 2008. And as a company purportedly sitting on a huge cash hoard, it had short-term debts of 2.33 billion yuan, with banks taking literally everything - bank deposits, inventories, buildings - as collateral for their loans. Now take a look at China Gaoxian and one will notice more than a passing resemblance to FerroChina. The company's 2009 prospectus showed that executive chairman and founder Cao Xiangbin sold 60 million shares at the IPO issue price of 26 cents apiece at the point of listing. A year later when the lock-up period ended for major shareholders, Carry Luck, a company owned by one Mr Hong Rong Zhi, lost no time in selling out too. In just two days last September, Carry Luck sold 53 million shares at 19.5 cents apiece and another 25.1 million shares at 19 cents each - both well below the 26-cent listing price. The sales took Carry Luck's stake to 4.99 per cent from 10.42 per cent. Another telling sign: the company had raised $78.2 million from its IPO here in 2009 and another $223.8 million from selling 600 million new shares in Seoul in January. Yet, like FerroChina, it had behaved like a cash-strapped firm, asking customers to pay up in cash and drawing down on its bank credit lines. It was this contradiction that prompted the SGX to put a query to the company. In hindsight, investors should have asked why China Gaoxian needed to raise so much cash over such a short period if its growth was self-sustaining. And what happens to that huge sum now? Is it still in the company's coffers? And shouldn't a question have been asked about the huge sales of China Gaoxian stock by a major shareholder last September, at below the IPO issue price? It is strange that irregularities could surface at China Gaoxian with FerroChina scandal still fresh in investors' minds. And it is a chilling reminder to all investors to stay vigilant at all times. engyeow@sph.com.sg
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rotijai Supreme	26-Mar-2011 13:34        rotijai About Contact  Quote this Post!
x 0   x 0  Alert Admin	some of these $ arent legal anyway.. they dont mind selling at a loss cause the $ wasnt theirs at the beginning. so they pumped in the dirty $ and washed it clean. Jackpot2010      ( Date: 26-Mar-2011 13:29) Posted: If u hold < 5% then no need to make announcement. But some of these " small" holders could be proxy for the BBs - enable BBs to hide behind the scene to avoid detection when they sell down. Our sgx are mere " clerical" workers to  permit such irregularities to continue repeatedly - useless and clueless to say the least!
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rabbitfoot Veteran	26-Mar-2011 13:34        rabbitfoot About Contact  Quote this Post!
x 0   x 0  Alert Admin	My final take on CGX : 1. Why did CGX, Hongxing and the other H chose world no. 1   E& Y as their Auditor, unlike lesser known auditor engaged by other S-chips ,  knowing that they will fully checked in the first place ?  2.  CGX has ID Chan (ex-SGX listing top guy) to head their audit committee and giving all the answers to SGX, KRX queries. 3. Coming Apr, EGM to be held to approve new Upstream factory. CGX said money already put in. Plot of land already acquired. If attend EGM, can see Chairman there. 4. Using ipo money, CGX bought hundereds & hundreds of sewing machines/kits delivered in phases last year. One investor even visited their factory just before CNY this year and saw them operating full swing. 5. Big boss selling shares just after ipo. Not unusual but common, as others also do it. Need money for own use. At least, not selling at  0.40.... I rest my case.
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Jackpot2010 Master	26-Mar-2011 13:29        Jackpot2010 About Contact  Quote this Post!
x 0   x 0  Alert Admin	If u hold < 5% then no need to make announcement. But some of these " small" holders could be proxy for the BBs - enable BBs to hide behind the scene to avoid detection when they sell down. Our sgx are mere " clerical" workers to  permit such irregularities to continue repeatedly - useless and clueless to say the least!
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