Chinese dairy milk producer, China Milk Products (China Milk), listed in Singapore in 2006. In January 2010, the company announced that it had received early convertible bond redemptions of US$146m (presumably following disappointing share price performance) and was awaiting clearance to remit the funds. Over the next few weeks there was a spate of director resignations before the company admitted that it would not meet the repayment. A subsequent investigation revealed that funds had been embezzled and liquidators were appointed in August 2011. Our analysis suggests the company inflated profits in order to raise capital from outside investors which was then embezzled. It is a confirmed fraud.

Last updated December 2021

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