Chinese producer of synthetic fibre, Sino Techfibre, listed in Singapore in 2006. During 2008, the company reported deteriorating profitability, a falling share price and independent director resignations - all warnings signs. In April 2011, the company's auditors Ernst & Young discovered discrepancies in invoices issued by the company and its suppliers. This resulted in a share suspension. The independent investigation was hindered by a fire which apparently destroyed the company's accounting records. Furthermore, the investigators were not allowed access to various computers under the pretext they contained state secrets. The independent directors last heard from the Chinese executive directors in 2012, leading to the shares being delisted in February 2020 as it had failed to meet the listing rules. Sino Techfibre is a confirmed fraud which likely inflated profits in order to raise capital.   

Last updated November 2021

The information on this page has been compiled from publicly available sources. GMT Research Limited has not verified the information and does not warrant its accuracy. Any claims made or views expressed are not necessarily those of GMT Research Limited.