ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

(29-05-2014, 09:23 PM)BlueKelah Wrote: [ -> ]We'll see soon enough It is china after all, Ren could be really innocent.

As for YZJ, HTM loans with 30+% exposure to property market is a BIG RED FLAG for me....

To make the "BIG RED FLAG" bigger, the 30+% is the the breakdown of borrowers. Base on the amount, the ratio is close to 60%. (base on latest 1Q2014 report)

(vested, and not yet a read flag for me)

Dalian: Tianjin Guoheng Railway Holding, a listed railway company in China, made an announcement to the stock exchange that it has reported several illegal activities of the company’s largest shareholder, Ren Yuanlin to authorities.

Ren Yuanlin, who controls several companies including Singapore-listed Yangzijiang Shipbuilding, made an acquisition of 12.11% equity in Tianjin Guoheng in January this year through one of his controlling companies and became the largest shareholder of Tianjin Guoheng.

Tianjin Guoheng accused Ren Yuanlin of several illegal activities including insider trading, misrepresentation, infringement of the independent operation of a listed company, illegal access to shares of listed company, manipulation of stock price and interference in the truthful disclosure of regular report.

Currently authorities have suspended the stock trading of Tianjin Guoheng, and are investigating the case. [27/05/14]

Steep & fast..

Today drop quite a lot. Probably due to this news more widespread now.

If I am a fund manager what should I do? Of course sell first then see and wait for outcome of news. If not my job at stake. This also presents a chance for investors to accumulate if you believe the news outcome is not going to have a big impact on Ren.

Red chip being red flag... given the S chip history, how much can we trust companies with substantial business in China run by Chinese?

If I am a holder, I will run for my life first.

Not Vested

actually the news is already 3 days old.

Hmm... talk about market efficiency, they only realized now?

The company the filed the complaint, it happens even earlier...

I divested yesterday, although the impact on the business might be minimal, but to me, without Yuan, with his connections to local government (one of top tax payer), and business acumen (progress in all initiatives he undertook thus far, eco ships, 10k boxship) I wouldn't trust someone else with Yangzijiang.

CF, are you ok? I remember we were vested around the same time, you should still be sitting on profits. hope things turn out well.

(30-05-2014, 04:06 PM)greengiraffe Wrote: [ -> ]Red chip being red flag... given the S chip history, how much can we trust companies with substantial business in China run by Chinese?

If I am a holder, I will run for my life first.

Not Vested

UOBKH: Ren Yuanlin and his Taixing Liyuan can not get along with the Guoheng Railway management and that is why Guoheng Railway. The CSRC has initiate an investigation into Guoheng Railway after Liyuan tipped off. Now Guoheng Railway's accusation against Liyuan can be considered as the reprisal.

If you study the chain of event, it really has nothing to do with YZJ. But that being said GG you have a point. Directors with many companies shareholder stake is vulnerable to such attack..

Yangzijiang Shipbuilding (Holdings) (YZJSGD SP) BUY
Price/Tgt: S$1.055/1.39 Mkt Cap: S$4.04b Daily Vol: S$9.8m 1-Yr Hi/Lo: S$1.24/0.795
Analyst: Lawrence Li/Nancy Wei Tel: +86 (21) 5404 7225*813/+65 6590 6628

Share price -8%, which could be due to A-share listed Guoheng Railway calling for investigation into Chairman, Ren Yuanlin

What's New?

Share price slumped 7% along with surge in trading volume.

Our view:

We believe the unusual share price movement could be related to the news about the Chairman, Ren Yuanlin, but YZJ says they can not find correlation between the share price movement and the news. There is nothing happening to Mr. Ren Yuanlin so far, according to our check.

The announcement was made on Monday night at Shenzhen Stock Exchange and Singapore investor had a slow reaction. We attach the news and our comment on 28 May.

Rail company calls for investigation into shipbuilding tycoon Ren Yuanlin
Tianjin Guoheng Railway Holding (000594 CH), a listed railway company in China, made an announcement to the stock exchange that it has reported several illegal activities of the company’s largest shareholder, Ren Yuanlin to authorities. Ren Yuanlin, who controls several companies including Singapore-listed Yangzijiang Shipbuilding, made an acquisition of 12.11% equity in Tianjin Guoheng in January this year through one of his controlling companies and became the largest shareholder of Tianjin Guoheng. Tianjin Guoheng accused Ren Yuanlin of several illegal activities including insider trading, misrepresentation, infringement of the independent operation of a listed company, illegal access to shares of listed company, manipulation of stock price and interference in the truthful disclosure of regular report. Currently authorities have suspended the stock trading of Tianjin Guoheng, and are investigating the case. (Sinoship News)

http://www.sinoshipnews.com/News/Rail-co...c2686.html

UOBKH: Ren Yuanlin and his Taixing Liyuan can not get along with the Guoheng Railway management and that is why Guoheng Railway. The CSRC has initiate an investigation into Guoheng Railway after Liyuan tipped off. Now Guoheng Railway's accusation against Liyuan can be considered as the reprisal.

Regards,

Lawrence Li
Equity Research- China Transportation
UOB Kay Hian
Tel: (8621)-54047225*813
Fax: (8621)-54047366

(30-05-2014, 04:13 PM)Greenrookie Wrote: [ -> ]actually the news is already 3 days old.

Hmm... talk about market efficiency, they only realized now?

The company the filed the complaint, it happens even earlier...

I divested yesterday, although the impact on the business might be minimal, but to me, without Yuan, with his connections to local government (one of top tax payer), and business acumen (progress in all initiatives he undertook thus far, eco ships, 10k boxship) I wouldn't trust someone else with Yangzijiang.

CF, are you ok? I remember we were vested around the same time, you should still be sitting on profits. hope things turn out well.

Well, I am still in profit, even with the lowest price today

I accumulated more today, around the lowest price. Again, I might be catching a falling knife...

(vested)

(30-05-2014, 04:24 PM)CityFarmer Wrote: [ -> ]

(30-05-2014, 04:13 PM)Greenrookie Wrote: [ -> ]actually the news is already 3 days old.

Hmm... talk about market efficiency, they only realized now?

The company the filed the complaint, it happens even earlier...

I divested yesterday, although the impact on the business might be minimal, but to me, without Yuan, with his connections to local government (one of top tax payer), and business acumen (progress in all initiatives he undertook thus far, eco ships, 10k boxship) I wouldn't trust someone else with Yangzijiang.

CF, are you ok? I remember we were vested around the same time, you should still be sitting on profits. hope things turn out well.

Well, I am still in profit, even with the lowest price today

I accumulated more today, around the lowest price. Again, I might be catching a falling knife...

(vested)

Good luck bro!. hope it has really nothing to do with him..