A STI component stock, Yangzijiang Shipbuilding (YZJ), is down 20% today and halted on possible fraud and halt of financing business. Is it sinking amid China’s continued anti-corruption campaign?
Rumours are also circulating the chief of Yangzijiang Shipbuilding, Ren Yuanlin, has been “missing” for over two months and is under investigation by Chinese authority for association of the corruption.
This post was originally posted here. The writer, a community member on InvestingNote.
YZJ stock price here: $YZJ Shipbldg SGD(BS6.SI)
Yangzijiang shipbuilding – is it sinking amid China’s continued anti-corruption campaign?
Rumors are circulating the chief of Yangzijiang Shipbuilding (BS6.SI), Ren Yuanlin, has been “missing” for over two months and is under investigation by Chinese authority for association of the corruption case involving Liu Jianguo, the former party secretary of City of Jiangyin and Jingjiang, where Yangzijiang Shipbuilding has grown from a shabby ship repair yard into a family owned ship-building giant.
The case of Liu Jianguo has been widely reported since June 2019 and it is one of the most serious corruption cases in Jiangsu province. You can find local media reports here: http://app.jingjiang.com/wap/thread/view-thread/tid/953522， and here: http://dy.163.com/v2/article/detail/EGR3F8PV0518RF5G.html, or you may google in Chinese. It’s been widely reported. The time Liu Jianguo was in office coincides with Yangzijiang’s aggressive expansion of business and also Yangzijiang’s diversification into financing business which are strictly regulated in China by licensing requirement, which often is seen as proof of “strong government connections”.
The company has been silent about the whereabouts of its chief however news are starting to circulate on the internet, especially among the overseas Chinese circle to circumvent the Chinese censorship,
From my own sources, I already had verification from Yangzijiang’s business partners that its financing business had been in halt since July. It is also shocking to learn from locals that many in Ren’s hometown of City of Jiangyin had been talking about the case for months, while the company had chosen to keep silent about what happened to its chairman.
More is coming as investigation continues…
Good thing is, many of our community members have already seen this coming days and weeks ago before today’s debacle: https://www.investingnote.com/posts/1307080
Once again, this article is a guest post and was originally posted on here on InvestingNote.
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