Martin Lee @ Sg
Sharing is Caring!

China Mingzhong Food Suspended After Attack by Glaucus Research

Yesterday morning, short sellers Glaucus Research Group published a report on China Mingzhong Food Corporation, one of the S-chips that is listed on SGX.

The report alleged widespread fraud in China Mingzhong including fabricated sales, fake suppliers, attempted cover-up and an inflated capital expenditure. The report can be downloaded here:

Glaucus Research on China Minzhong Food

If the allegations in the research report are true, the company would have managed to pull a big wool pulled over the eyes of their investors and auditors.

After the report was released by Glaucus Research, the share price of China Mingzhong dived almost 50%, and the company immediately called for a suspension of their shares.

At 9pm last night, China Mongzhong came up with this press release:

It has been brought to the attention of China Minzhong Food Corporation Limited that Glaucus Research Group has released a report regarding certain affairs of the Company. The Report has caused a substantial decrease in the share price of the Company this morning and Glaucus has openly stated that Glaucus and those acting in concert with it are short sellers who will profit from the decline of the Company’s stock price.

The Company is in the process of reviewing the Report and will provide its response shortly. The Company will take all necessary steps to defend its reputation and will not hesitate to take legal action against those who put up and disseminate false or misleading statements without due regard to their truth and for the purpose of inducing others to deal in securities.

In the meantime, the Company has halted the trading of its stock and reserves all rights against the aforesaid parties.

Business Times has written a premium article on this saga too:

China Minzhong gets ambushed by shortseller

It remains to be seen how all this will pan out but for many investors of S-Chips, this is deja-vu all over again. Quite a number of S-chips have already been suspended or delisted due to one reason or another.

  • FerroChina – Delisted
  • China Printing & Dyeing – Delisted
  • Fibrechem Technologies – Suspended
  • Beauty China – Delisted
  • Oriental Century – Delisted
  • China Sun Bio-chem – Suspended
  • Celestial NutriFoods – Suspended
  • Sino-Environment – Delisted
  • China Milk Products Group – Suspended
  • KXD Digital Entertainment – Suspended
  • China Hongxing Sports – Suspended
  • Hongwei Technologies – Suspended
  • China Gaoxian – Suspended
  • Sino Techfibre – Suspended
  • China Sky Chemical Fibre – Suspended
  • Sinopipe – Suspended

Leave a Comment:

Notify me of followup comments via e-mail. You can also subscribe without commenting.

3 comments
China Minzhong Refutation and Possible Takeover Offer says 5 years ago

[…] evening, China Minzhong released a refutation of the allegations made by Glaucus Research. You can download their response […]

Reply
Rogerjunan says 5 years ago

If yesterday report from Glaucour on Minzhong is true, I wonder what our SGX has done before these s-Chip company listed in Singapore?

Why these Research Company can do a better job to dig out these company in fraud instead of our regulator in SGX?

Is it that we concerns to collect money from these S-Chip company and then later paid by these poor innocents investors?

Reply
    Martin Lee says 5 years ago

    Dear Roger, I have long given up on the S-chips sector. This might just be the tip of the ice berg. Singapore also does not have an extradition treaty with China, which means we are able to bring the wrong doers to task here. Have you read this? http://www.martinlee.sg/confession-of-an-s-chip-ceo/

    Reply
Add Your Reply

Notify me of followup comments via e-mail. You can also subscribe without commenting.