In November 2004, China Aviation Oil (CAO) announced that it had lost S$550m on speculative oil derivate trading and requested a trading halt until it had come to a satisfactory arrangement with creditors. CAO's parent company, China Aviation Oil Holding Co (CAOHC), had been made aware of the losses some two weeks earlier and had sold a 15% stake in the intervening period. It was subsequently fined S$8m for breaching Singapore’s insider trading laws. CAO had not been accounting for the marked-to-market (MTM) derivative losses correctly, making it difficult to identify beforehand. The company's CEO and CFO were both fined and jailed. On 29 March 2006, trading resumed in the company's shares. 

Last updated September 2021

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