China Minzhong hit by shortseller. Bear Empire affected and lost 11k

[kebinu]

May I ask for glaucus the short seller will they get fined by SGX? This is as they short sell but the stock is now halted so they cannot buy back.

I heard the fine is S$1000 per day?

naked short yes, will have heavy penalty. worse if this stock doesnt resume trading in 6 trading days.

 

[kelvinkezz]

May I ask for glaucus the short seller will they get fined by SGX? This is as they short sell but the stock is now halted so they cannot buy back.

I heard the fine is S$1000 per day?

CFD can short too

 

[Esthergal]

Will Temasek save this ?

 

[Some-one]

Will Temasek save this ?

I doubt so as they do not even has a stake in it. Besides, if you read Glascus report, you would be surprised how they uncover this fraud with solid evidence from SAIC.

 

[dexboi]

I am quite curious how BIG TIME short sellers can sell and cover their a$$ (manage risks) at the same time?

1) Naked shorts and let it be
2) Naked shorts and stock unhalt after 3days
3) Naked shorts and stock suspend forever

Even if they are so sure the stock is worthless as they claimed, can scenario 3 above earn them BIG money?

 

[dexboi]

you would be surprised how they uncover this fraud with solid evidence from SAIC.

Yea. I was actually very intrigued by how they GPGT.

Got Proof Got Talk
Got Pictures Got Talk somemore
All the efforts to untiong for you also...

 

[nauhchop]

naked short yes, will have heavy penalty. worse if this stock doesnt resume trading in 6 trading days.

Agree,
For people who short naked and this trading halt is not lifted in 6 days, this one will cause a lot of shortists to lose money madly.

This stock today mayhem. People who long lose, short also lose due to trading halt.

 

[nauhchop]

I doubt so as they do not even has a stake in it. Besides, if you read Glascus report, you would be surprised how they uncover this fraud with solid evidence from SAIC.

Why would temasek want to save this company?

I am puzzled what kind of social responsibility SGX should take here when it comes to allowing s chips to be listed.

For local companies to be listed, proper audit must be shown. But for s chips to be listed, there is a need for more stringent procedures in auditing and accountancy.

Auditors can basically do some "rectifications" if they see some issues which they uncovered during the audit process to allow the company to list on board.
If there are wrongdoings prior to ipo, SGX should not only bring the company to task but also the auditor.

I believe the CFO now discussing with legal team how to siam all the questioning, as all arrows and questions will be on him.

 

[phoenix147]

naked short selling is scary is there no limit to the amount of loss that you are going to incur if they never lift the trading halt ?

 

[nauhchop]

naked short selling is scary is there no limit to the amount of loss that you are going to incur if they never lift the trading halt ?

The most scary part of naked short is trading halt, suspension... Don't ask me how much loss, because my broker say lose money from normal losses still nevermind. But lose from naked short is most ai wan.

 

[kebinu]

Long lose 100%.

Short, wah seh, lose till underwear also gone because of penalties etc. After a certain days, maybe can nego to pay a lump sum and that's it. (need remisier to check)

In USA, i read that if one short and company delist without offer, they earn 100%. In singapore, it's lose that 100% also.

If use CFD to short also jia lat, holding the position indefinitely, paying the finance charge forever. haha

 

[Seannie]

I feel sorry for you...never trust china product

China products. Cheap! But spoils fast... NO QC

 

[tiny]

If suspended.. you can admire the sgx paper statements and feel rich

 

[AceyourMaths]

Most scary is still contra then tio suspend. Lose till cannot recognise home (blc)

 

[chingkc]

Sino Grandness also affected and kena SGX query...

 

[Dividends Warrior]

Sino Grandness also affected and kena SGX query...

Oh no.....this is bad

 

[Sinkie]

Most scary is still contra then tio suspend. Lose till cannot recognise home (blc)

If suspended.. you can admire the sgx paper statements and feel rich

nolah, it will unhalt one..

 

[Sinkie]

Long lose 100%.

Short, wah seh, lose till underwear also gone because of penalties etc. After a certain days, maybe can nego to pay a lump sum and that's it. (need remisier to check)

In USA, i read that if one short and company delist without offer, they earn 100%. In singapore, it's lose that 100% also.

If use CFD to short also jia lat, holding the position indefinitely, paying the finance charge forever. haha

no, if you shorted nude, counter become suspended, got 3 ways to solve
1) borrow shares from other (with annual interest to pay), n return, until it become unhalt, then buyback
2) buy shares from others at off market price and return
3) treat as contra loss and pay slowly the full amount, then when it unhalt, buy back and take back your capital.

 

[NivlekBay]

Will Temasek save this ?

The other Govt arm is already vested in this. Lets see how they account or fix this, very soon.

 

[nauhchop]

no, if you shorted nude, counter become suspended, got 3 ways to solve
1) borrow shares from other (with annual interest to pay), n return, until it become unhalt, then buyback
2) buy shares from others at off market price and return
3) treat as contra loss and pay slowly the full amount, then when it unhalt, buy back and take back your capital.

All the 3 solutions i noticed something common which is loss, interest, off market price.

Due to shorting nude. That's why advice to shortists is many shorts wins, cannot cover 1 disastrous short.

For this even when trading lifted, confidence from investors already finished.