Singapore’s S-Chip Scandal
In 2007, Singapore’s stock exchange started enthusiastically pitching for Chinese SMEs to list on the SGX.
Since then, an astoundingly large number of these so-called “S-Chips” have been embroiled in accounting scandals - mostly involving missing cash or fraudulent transactions in the Chinese operating subsidiaries.
Just this week, another two companies have admitted to “accounting irregularities”: sportswear maker China Hongxing (whose shares were suspended on Friday after tanking from 15.5c to 11.