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.

The UOB Files: Inappropriate Structured Deposit is even more inappropriate

I ranted a few weeks ago about an egregious structured deposit from UOB - a trade that locked aunty-and-uncle customers in for six years, mysteriously linked their returns to a 2y5y SGD swap curve steepener, and had worse returns than a term deposit down the street at ICICI bank. They’ve outdone themselves now, though, launching a product that’s doesn’t just give worse returns than a time deposit - it gives worse returns than a Singapore government bond.

Inappropriate Structured Deposit is Inappropriate

“The joy of giving continues at UOB”, shouted the flier that Singapore’s second-largest bank stuffed through my letterbox earlier this week. It was a Christmas-themed advertisement for their latest structured deposit, the UOB Principal Guaranteed Structured Deposit: Growth Deposit - Series (11) - brackets and italics in original. “Enjoy 7.5% Total Guaranteed Minimum Interest!” it blared, and you might think that was pretty great. But if you look in the fine print (which takes up two-thirds of the page), you’ll see it’s not a 7.

When 20,000 real estate agents disappear

Singapore has, according to estimates, about thirty thousand real estate agents in a city of five million people. Or had, until last Friday night. I was on my thirty-somethingth Hendricks and tonic when the clock rolled over from Friday to Saturday, and I completely missed the moment when more than twenty thousand real estate agents… disappeared. From Channel News Asia (Singapore’s own 24-hour news network, which combines the impartiality of Fox News, the production values of early-eighties CNN, and the nose for journalism of CNTV):

Seventeen hours, fifty-five minutes

17:55 to go, Singapore: Takeoff. Singapore shrouded in low cloud, as per usual. 17:45 to go, Johor Bahru: seatbelt sign off. Bust out my half-finished copy of The Rational Optimist. 15:15, Thailand: take a break from reading. Matt Ridley was a terrible bank manager, but he’s a brilliant science writer. Good to see he’s decided to stick to his doctrine of specialization and trade. 15:14: leaf through inflight duty-free catalog. What on earth is a Lancome Duo Virtuose Precious Cells and why does it sound like something pilfered from a Genentech lab?