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To: energyplay who wrote (51063)	6/17/2004 2:47:09 AM
From: TobagoJack	Respond to of 74559

i am not sure but exposure of fraud generally happen at times of financial stress/voaltility (ala Asian Financial Crisis, Resolution Trust 1989 etc) for example ... Message 20228741 in NYC This round, I suspect HK will only be a side show to the main event in what Soros termed 'the center'. Chugs, Jay

To: energyplay who wrote (51063)	6/18/2004 10:00:28 AM
From: TobagoJack	Respond to of 74559

Cockroaches ... always more when one is found ... Friday, June 18, 2004 $2b firm's chiefs can't be found as stock dives scmp.com STUART BIGGS and STAFF REPORTERS Bosses of a Hong Kong-listed pharmaceutical firm could not be contacted yesterday after its stock was suspended from trading following a share price plunge of more than 90 per cent amid panic selling. Hong Kong Exchanges and Clearing confirmed that Far East Pharmaceutical Technology top brass could not be reached, leading to a trading suspension just four minutes before the market closed. The company was last reported to be holding $600 million in cash but the apparent inability to reach management triggered a 92.44 per cent share price decline, resulting in its market value collapsing to $147.95 million from $1.95 billion at the start of trading. "The company's share price has dropped by 90 per cent today and the exchange has tried to find the company's authorised representatives to give an explanation. As the exchange staff could not find the representatives, we had to suspend the company," HKEx chief executive Paul Chow Man-yiu said. The stock price slid to 6.8 cents from 90 cents. Senior executives could not be contacted by phone yesterday and security staff barred access to the firm's Tsim Sha Tsui offices, which were besieged by media. The company's managing director, Barton Tso Ming-sing, was quoted on financial news website ET Net as denying the firm faced financial difficulties. He said its chairman, Cai Chongzhen, and executive director Chen Wei were in the mainland and could be contacted. Recent cases of absconding company directors have focused investors and regulators on the governance of smaller companies with significant cash holdings. Defending the exchange's oversight of listed firms, Mr Chow said: "It is impossible for stock exchange staff to track the location of all chairmen and executives at more than 1,000 listed companies 24 hours a day. The exchange can only take action to contact executives when problems actually occur." The Fujian-based, Taiwanese-controlled firm was listed in Hong Kong four years ago. It mainly produces cold tablets, vitamins and Chinese patent medicines, and has diversified into genetic research. According to debt market newsletter Basis Point, the firm signed an US$80 million syndicated three-year loan on May 10 arranged by Standard Chartered Bank. This followed a syndicated loan of US$31 million signed in May last year. Brokers said the sell-down was triggered by Value Partners, a fund house well known for its aggressive investment in medium-sized and China-based companies. Other brokers said aggressive selling by KGI Securities triggered the initial slide, which was accelerated by margin calls from other brokers. "Without buying support the stocks fell rapidly," one analyst at a local brokerage said. Ben Kwong, associate director at KGI Securities, put the dramatic decline down to investors facing margin calls from their brokers. Some brokers complained that suspending the stock only four minutes before the close trapped day-traders who could not close positions. This was rejected by Mr Chow, who said investors had had most of the trading session to square their positions.