Chinese Investors in South Korean listings Are Repeatedly Delisted; Fictitious mask Contracts Cost Korean Investors $2.7 billion
In recent years Chinese capital has been aggressively venturing outside, seeking to list on overseas financial markets. South Korea Stock Exchange also continued receiving Chinese capital application for listing and backdoor listing through the acquisition of South Korean companies recently. However, many of the alleged financial statuses are unclear that at least 12 Chinese stocks have been previously delisted in South Korea, accounting for 85% of the delisted foreign stocks. An analysis by South Korea Daishin Securities indicated that Chinese companies tend to exaggerate their marketing goal and often violate their commitments to corporate investment and management. They described Chinese capitals as unreliable and called on investors to be cautious.
Mask Agreement is “made out of nothing”, stock price drops 50% after being revealed
LIS, a manufacturer of laser supplies and mask production lines, received a stake in China’s Jiangsu Yawei Machine in September last year. The latter currently holds 21.84% of the shares and becomes the largest shareholder of LIS. The company unilaterally announced in the middle of this month that it had reached a USD 900 million (approximately HKD 7 billion) mask supply contract with the paper manufacturer Double A, but Double A denied the news the next day. LIS immediately announced the cancellation of the agreement and its stock price plummeted from 13,550 won to 6,050 won in less than two trading days, a decline of more than 55%. LIS apologised to shareholders for the incident and admitted that it had not signed an agreement with Double A.
Source from: Apple Daily #Dec27
https://hk.appledaily.com/international/20201227/N5UFWZBHEVG4DKYQ7BD52ZFJWE/
#SouthKorea #China #StockMarket #MaskProduction #Investors #LIS #DoubleA #Agreement
In recent years Chinese capital has been aggressively venturing outside, seeking to list on overseas financial markets. South Korea Stock Exchange also continued receiving Chinese capital application for listing and backdoor listing through the acquisition of South Korean companies recently. However, many of the alleged financial statuses are unclear that at least 12 Chinese stocks have been previously delisted in South Korea, accounting for 85% of the delisted foreign stocks. An analysis by South Korea Daishin Securities indicated that Chinese companies tend to exaggerate their marketing goal and often violate their commitments to corporate investment and management. They described Chinese capitals as unreliable and called on investors to be cautious.
Mask Agreement is “made out of nothing”, stock price drops 50% after being revealed
LIS, a manufacturer of laser supplies and mask production lines, received a stake in China’s Jiangsu Yawei Machine in September last year. The latter currently holds 21.84% of the shares and becomes the largest shareholder of LIS. The company unilaterally announced in the middle of this month that it had reached a USD 900 million (approximately HKD 7 billion) mask supply contract with the paper manufacturer Double A, but Double A denied the news the next day. LIS immediately announced the cancellation of the agreement and its stock price plummeted from 13,550 won to 6,050 won in less than two trading days, a decline of more than 55%. LIS apologised to shareholders for the incident and admitted that it had not signed an agreement with Double A.
Source from: Apple Daily #Dec27
https://hk.appledaily.com/international/20201227/N5UFWZBHEVG4DKYQ7BD52ZFJWE/
#SouthKorea #China #StockMarket #MaskProduction #Investors #LIS #DoubleA #Agreement