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ASX delisting Chinese companies at a record rate

Discussion in 'ASX Stock Chat' started by greggles, Feb 15, 2019.

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  1. greggles

    greggles I'll be back!

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    Rest of article: https://www.abc.net.au/news/2019-02-15/asx-delists-six-chinese-companies-in-2018/10786062

    I think the question needs to be asked, why were these companies admitted in the first place? The ASX is obviously cracking down now, well after the fact, but there should have been a far stricter vetting process in the first place. When you look at some of the reasons for the delistings it is clear that cultural differences play a big part in what has gone wrong:
    What constitutes good corporate governance in China is clearly very different to what is expected here.
     
  2. peter2

    peter2

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    Well said @greggles. The governance of the ASX is as slack as APRA and ASIC. I hope the ASX has taken note from the Bank RC and this is only the first of many delistings.

    I could print a list with hundreds of codes that shouldn't be listed on the ASX.
     
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  3. jbocker

    jbocker

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    I have learned to distrust Chinese company culture and their involvement in Australian businesses. And when asking ASX for their view on a matter or two, it was only an experience of learning what they cannot help with.
     
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  4. Gringotts Bank

    Gringotts Bank

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    Regulatory bodies do everything well after the fact. They don't look to keep things clean in a proactive manner, they wait until the dirt piles up.
     
  5. Parse

    Parse

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    Would be interested to read that list, if you ever decide to post it.
     
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  6. noirua

    noirua

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    Some Chinese companies are difficult to chase and even if a company is taken to court in China a Chinese lawyer is required as they wont accept translations. Also many are really nothing as it's easier to announce increased profits from plantations that do not exist. Forsythia is a favourite. As the share price rises Chinese sell their shareholdings whilst bullish announcements continue. Then storms or frost arrive, so reported, wiping out non-existent crops. Eventually after more and more bad news the company just disappears. After all it never existed in the first place. Yes, it was a mirage.

    They might have one or two non-Chinese on the Board of Directors. They usually resign their positions before the end game.
     
    Last edited: Feb 17, 2019
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  7. noirua

    noirua

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    Over 470,000 Chinese companies are registered in the secret British Virgin Islands. Much of this was heralded by the British through Governor Patten as they sought an agreement on the change over to Chinese rule in Hong Kong in 1997.

    The only BVI requirement is to have one director and an Annual General Meeting that can be carried out on the phone by two people who agree the accounts. BVI get their fees and that is that.
    Much of the company details in BVI are out of date or incorrect, especially company addresses in Hong Kong and China.
     
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  8. Miner

    Miner

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    Ha Ha. We are relying on Chinese Company culture - so why we complain ??
    BTW, to have a first-hand feeling being outside Australia, visit CITIC Pacific Minesite if you can. I could not sustain more than 3 months to compromise my values and professionalism just to earn money.
     
    qldfrog likes this.
  9. jbocker

    jbocker

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    Ahhh You look at the magnificent plantation over there.
    Err, what plantation? I cant see any plantation.
    There !! Over there. On the brochure!
     
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