Sadly, saying “shove it up your arse” in a regulatory filing is frowned upon

Slightly old news (it’s from January) but this is, to put it politely, quite astonishing: when the SGX ordered listed company China Sky Chemical Fibre to appoint a special auditor to investigate its (probably fraudulent) accounts and (probably dodgy) related-party real estate transactions, China Sky turned around and told the SGX to shove its special auditor up its tailpipe.

It says volumes, I think, that a dodgy Chinese midcap can defy the SGX’s market regulatory authority without any repercussions beyond a sternly worded (but weirdly petulant) letter from the exchange:

The Exchange reiterates that it will continue to communicate directly with any officer of any listed company. The Exchange will not allow any issuer to dictate how it regulates listed companies.

The Exchange reprimands the Company, and each and every one of the directors of the Board […] for their flagrant disregard of the Directive and for their non-compliance with the Directive in breach of Listing Rule 704(14).

Update: if ever there was a case that deserves to fail the laugh test, it’s this one: an ex-director of China Sky has sued the SGX to overturn the exchange’s reprimand.

Meanwhile, another director has had his assets frozen after spiriting at least $10 million  – and himself – back to China.

Update 2: as of yesterday, Deloittes have resigned as China Sky’s auditors, citing “a lack of independent directors”. What do you reckon that’s code for

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