China Lumena will be removed from the Hang Seng Composite Index after its chairman and its controlling shareholder apparently absconded with 10 billion yuan of company funds

Lumena fades off from benchmarks 
Imogene Wong
Thursday, May 08, 2014
China Lumena New Materials Corp (0067) will be removed from the Hang Seng Composite Index after its chairman and its controlling shareholder apparently absconded with 10 billion yuan (HK$12.4 billion) of company funds.

Chairman Zhang Zhigang and controlling shareholder Li Yan, also known by his Tibetan name Suo Lang Duo Ji have fled in the past few days with the funds, mainland media reports said yesterday. Li also goes by a Western name, Dominique Shannon, and owns 33.5 percent of the firm.

Shares of the Sichuan-based industrial chemical maker have been suspended from trading since March 25.

But the firm denied the reports, saying it had contacted Zhang who told them he was in contact with Li and everything was on track.

Another firm owned by Li, Cheungdu-based Theng Hong Heavy Engineering, formerly known as Sichuan Tengzhong Heavy Industrial Machinery, also denied internet rumors that it had gone bankrupt.

In 2010 Theng Hong tried to acquire US utility vehicle maker Hummer from car giant General Motors but failed.

Lumena was attacked in late March by Glaucus Research, a California-based short-seller, which claimed it had faked key sales data by 90 percent.

The company denied the allegations but share trading has been halted since then. China Investment Corporation, the nation’s sovereign wealth fund, holds a 6.41 percent stake in Lumena

 

About bambooinnovator
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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