More than a decade ago, China Hongxing was among the clutch of high-flying S-chips that investors in Singapore chased after — until a growing string of them fell under because of corporate governance issues or simply failed at their businesses. In the case of China Hongxing, accounting irregularities were discovered in 2009 and cash balances were found vastly inflated. The stock has been suspended since then.
SINGAPORE (Nov 25): Suspended for about eight years, and counting, China Hongxing Sports is a counter that its long-suffering minority shareholders have most likely written off. A reprieve might be seen soon.
In March 2018, shareholders voted to sell the operating assets worth RMB470.7 million for just RMB100 million to the Wu family, which controls the maker of sports shoes, effectively turning the company, which had a peak market value of $3.4 billion in 2007, into an empty shell whose residual value is basically its Mainboard listing status.
