Legal firms biting at the heels of Sinovel Wind Group; prosecutors are asking for compensation for losses resulting from the company’s fraudulent financial statements

June 3, 2013 Leave a comment

Legal firms biting at the heels of Sinovel Wind Group

Staff Reporter 2013-06-03

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Sinovel Wind Group announced on May 30 that it has received notice from the China Securities Regulatory Commission of a pending investigation into the company for the alleged violation of the Securities Law. According to NetEase, a Chinese web portal, some legal firms have started soliciting entrustment from investors for suing Sinovel. The prosecutors are asking for compensation for losses resulting from the company’s fraudulent financial statements. On April 13 2013, Sinovel announced that it had received notification from the Beijing Securities Regulatory Bureau, which discovered that some business receipts, related figures, and financial records of the company were off the mark, leading to inflated profits in 2011. According to the Securities Law, investors can file civil suit for compensating their losses caused by false statements which are confirmed and penalized by the China Securities Regulatory Commission. Sinovel listed its shares on the A-share market on Jan. 13, 2011, at an IPO of 90 yuan (US$14.66) per share. The shares closed at 5.76 yuan (US$0.93) on May 29, which translated to a combined 73% decline over the past two years.

Filed under Investing Process, Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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