Sunday, January 30, 2011

China Milk: One-year anniversary of suspension

It has been close to a year since China Milk Products Group got suspended from trading. To-date, it has yet to complete a special audit and has only released the financial results for the 9 months ending 30 September 2009!. The company's most recent announcement was that it rejected the Singapore Stock Exchange direction for a quantity survey.

Although I am not invested in the company, I have been following the news because I once made a small profit out of it. Nonetheless, I think that the exchange operator has a duty to ensure that any possible corporate mischief is kept to the minimum if it were to be a world class one. As such, I have emailed SIAS and will keep readers informed of any actions taken by the group set up to protect the interest of retail investors.
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7 comments:

  1. AaronFebruary 22, 2011 at 2:52 PM

    Any updates?

    ReplyDelete
  2. Singapore Stock PickerFebruary 22, 2011 at 10:27 PM

    no updates from them whatsoever. if anyone out there have more effective email channels, do let me know. i will try to email them.

    ReplyDelete
  3. AaronFebruary 23, 2011 at 10:48 PM

    sgx can let chinamilk suspend for more than 1 year?

    ReplyDelete
  4. Singapore Stock PickerMarch 1, 2011 at 7:41 PM

    sgx sure can. Guangzhao was suspended for quite some time, so was China Enersave...

    ReplyDelete
  5. AnonymousMarch 30, 2011 at 3:45 PM

    Does SGX liable to provide follow up on this issue to public?
    If not, who in SGP can?
    To individual investor who vested in this company, what can be done now?

    ReplyDelete
  6. Singapore Stock PickerApril 1, 2011 at 7:14 AM

    no one in Singapore is liable. may be the person who signed of the financial statements? However, the people responsible for signing off the financial statements are no longer in the country or were not in the country to begin with....

    for individual investors, not much can be done now other than just wait for SGX to inform the company to un-suspend

    ReplyDelete
  7. AnonymousApril 26, 2011 at 9:14 PM

    Dear Sir,

    Thanks for the update. I am also completely taken by the course of events here. How can a company be listed in a country like Singapore, yet the authorities and the Stock Exchange be absolutely unable to provide the investors any sort of protection whatsoever? Is there anyone in the SGX even working on this or what can be expected as a resolution?

    If I understand it correctly, the Chairman and majority owner has just decided that he no longer wants to share the business with the minority investors. And there is absolutely no mechanism to make him honour the agreements. This is a disgrace. And this is what keeps so many investors worldwide away from China and Emerging Asia.

    ReplyDelete

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