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The SEC alleges that ChinaCast Education’s former CEO Chan Tze Ngon illicitly transferred $41 million out of the $43.8 million raised from investors to a purported subsidiary in which he secretly held a controlling 50% ownership stake

SEC Charges China-Based Executives With Fraud and Insider Trading

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Washington D.C., Sept. 26, 2013 —

The Securities and Exchange Commission today charged the former CEO of an education services provider based in China with stealing tens of millions of dollars from investors in a U.S. public offering, and charged another executive with illegally dumping his stock in the company after he helped steal valuable company assets. The SEC alleges that ChinaCast Education Corporation’s former CEO and chairman of the board Chan Tze Ngon illicitly transferred $41 million out of the $43.8 million raised from investors to a purported subsidiary in which he secretly held a controlling 50 percent ownership stake.  From there, Chan transferred investor funds to another entity outside ChinaCast’s control.  Chan also secretly pledged $30.4 million of ChinaCast’s cash deposits to secure the debts of entities unrelated to ChinaCast.  None of the transactions were disclosed in the periodic and other reports signed by Chan and filed with the SEC. Read more of this post

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Scenic World Blue Mountains on their business and what keeps it on track

Family business case study: Scenic World

Success from out of the blue.

Fast facts

Located 1 Violet Street, Katoomba NSW 2780.
History Established in 1945 by Harry Hammon. David Hammon joined the firm in 2006 and became Joint Managing Director with sister Anthea, in 2011.

Converting a disused mining site into a bustling tourist attraction took a lot of foresight in 1945. Today, family-owned Scenic World is staking its claim to being one of Australia’s most popular attractions. Featuring the steepest passenger railway in the world and a glass-bottomed cable car, they know how to capitalise on what the Blue Mountain’s have to offer. David Hammon, Joint Managing Director for the company (with sister, Anthea), enthusiastically spoke with us about being a three-generation family business.

Has being a family business helped with your success?

We’re a third generation family business, so we’ve been running this site for 68 years now. After you’ve been somewhere for that long you get pretty good at it. I also think, as a family business, you tend to be a bit more dynamic and willing to try new things, and because we have that ‘freer’ perspective we can react faster. Our Facebook page is a really good example; we looked around and saw that nobody in our industry was doing it and we were able to react very quickly and gain an advantage. Because we have a flat structure and the board of directors was happy to let us run with it – we were able to set everything up quite fast – and we now have over 300,000 more ‘likes’ than the next best. Read more of this post

China banks face daunting money squeeze

September 26, 2013 9:19 am

China banks face daunting money squeeze

By Henny Sender

Fears banks lack risk management skills for brave new world

The path of financial reform in China is becoming ever more tortuous. Bankers gathered at a Singapore summit last weekend say the next step on the path is interest rate deregulation, which could come in the next 18 months, bringing in its wake myriad headaches both for the banks and for many of their customers. It is a logical next step. By deregulating rates, Beijing hopes to stem the growth of the shadow banking system, which has been largely driven by the desire of those with excess cash to earn more interesting amounts on their savings while borrowers who cannot get loans at the artificially low rates at the banks currently hope to attract funds by paying more for them unofficially. Read more of this post

Mortgage Trouble in Chinese City; Borrowers Walk Away From Homes in Wenzhou

Updated September 26, 2013, 7:42 p.m. ET

Mortgage Trouble in Chinese City

Borrowers Walk Away From Homes in Wenzhou

ESTHER FUNG

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SHANGHAI—Tighter credit and falling housing prices in the eastern Chinese city of Wenzhou have led to a wave of mortgage defaults and abandoned properties in the city, where persistent property-price drops have flown in the face of a national upturn in prices. Homeowners in the city have abandoned 580 homes and there are another 15 cases of mortgages in default, according to a national state-radio broadcast citing a local official in charge of investigating mortgage defaults. The broadcast, which followed local-media reports of more widespread defaults, didn’t give a timeframe for the cases cited, and the official numbers are hardly staggering. Read more of this post

Building resilience: an introduction to business models

Building resilience: an introduction to business models 

August 06 2013

In today’s business environment it is more important than ever that organisations understand their business model, and are ready to adapt it to counter external threats.

Building resilience: an introduction to business models looks at how business models function and the factors that contribute to their success and failure.  It explores examples of innovative business models disrupting their markets as well as business models which have failed. It also looks at how management accountants can help build business model resilience into strategic planning. Our commercial environment is characterised by rapid change. New technologies are introduced, customer behaviours and desires shift with globalisation, supply and distribution chains mutate. And all at speeds unprecedented in economic history. This means that a business model which worked yesterday could fail tomorrow. With a holistic view of their organisation, management accountants are well placed to understand this link between the business model and commercial success. Read more of this post

Yu Guangyuang, the economist who inspired Deng Xiaoping’s reforms

Yu Guangyuang, the economist who inspired Deng Xiaoping’s reforms

Friday, 27 September, 2013, 12:00am

OBITUARY: Yu Guangyuan 1915-2013

Cary Huang cary.huang@scmp.com

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Yu Guangyuan, a renowned economist who helped late paramount leader Deng Xiaoping launch his market reforms in late 1970s, died yesterday. He was 98. Yu, who also once advised liberal former party chiefs Hu Yaobang and Zhao Ziyang , co-wrote a keynote speech delivered by Deng at a crucial party meeting in 1978. Deng’s speech to the Third Plenum of the Communist Party’s 11th Central Committee that year is seen as heralding the era of market reform and openness. The plenum is now remembered as a watershed in modern Chinese political history. Read more of this post

Successful People Start Before They Think They’re Ready

Successful People Start Before They Think They’re Ready

JAMES CLEARBUFFER SEP. 26, 2013, 8:01 PM 4,442 6

In 1966, a dyslexic sixteen-year-old boy dropped out of school. With the help of a friend, he started a magazine for students and made money by selling advertisements to local businesses. With only a little bit of money to get started, he ran the operation out of the crypt inside a local church. Four years later, he was looking for ways to grow his small magazine and started selling mail order records to the students who bought the magazine. The records sold well enough that he built his first record store the next year. After two years of selling records, he decided to open his own record label and recording studio. Read more of this post

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