Chaoda Modern Agriculture 0682

[winston]

Not vested. They want you to read it before it opens.

Anyway it's only 1m out of 328m shares traded today.

Maybe the regulators should check whether there was any noticable short-selling in the last few weeks before the article was published in the Next Magazine.



PURCHASE OF SHARES

The board (the “Board”) of directors of Chaoda Modern Agriculture (Holdings) Limited (the “Company”) was notified by Kailey Investment Ltd. (“Kailey”), a substantial shareholder of the Company, that it has purchased 1,000,000 shares of the Company at the average price of HK$3.84 on the Stock Exchange in the morning of 26 May 2011.

Kailey is wholly owned by Mr. Kwok Ho, Chairman of the Board.

http://www.hkexnews.hk/listedco/listcon ... 526086.pdf

[Muhajir]

Not vested. Some news of interest from my broker.

UPDATE 1-Chaoda Modern says report inaccurate as shares plunge

* Shares dive as much as 25 percent, hit two year low
* Next Magazine says size of farmland overstated by Chaoda
* Chaoda denies, reserves right to take legal action
* Chairman buys 1 mln shares at HK$3.84 each

HONG KONG, May 26 (Reuters) - Shares of Chaoda Modern Agriculture (Holdings) Ltd <0682.HK> posted their biggest single-day loss in eight years on Thursday, after a media report said the Chinese vegetables and fruit producer exaggerated its farmland area, among other allegations.

Despite a modest gain in the benchmark Hang Seng Index <.HSI>, the stock lost as much as 25 percent to a session low of HK$3.48, as traders said the fall was linked to the report published in Next Magazine on Wednesday. The stock traded down 19.6 percent at HK$3.73 at 0558 GMT.

Next Magazine, in a five-page Chinese language report, said the size of Chaoda's farmland in Beijing, Hebei, Tianjin and Fujian was overstated.
"The Board would like to clarify that the contents of the article are not factually accurate and true. The company reserves its right to take legal action in connection with the article," the company said in a filing with the Hong Kong stock exchange.

Chaoda also said Kailey Investment, a company owned by its chairman Kwok Ho, bought 1 million shares in Chaoda at HK$3.84 each on Thursday morning.

Chaoda, which has raised capital several times in Hong Kong over the past few years, was trading at low earnings multiples partly because of investor concerns about transparency of the company, analysts said. It was trading at 2.35 times its 2010/11 earnings.

"This is not a stock I would usually recommend investors to buy," said Jackson Wong, vice-president at Tanrich Securities.

Macquarie analyst Jake Lynch said in a research report in late March that he remained uncomfortable with a number of issues regarding Chaoda's corporate governance, while putting a "outperform" rating on the stock due in part to low valuation.

Chaoda scrapped an international senior notes offering earlier this month, citing unfavourable market conditions.

Source: Reuters

[Muhajir]

-Not vested

Looks like the share repurchasing did not boost investor confidence. Near a 52 week low at $ 2.88.

[Muhajir]

Chaoda 'cleared' in land holdings claims
By Helen Yuan (China Daily) Updated: 2011-06-14 14:49

Chaoda Modern Agriculture Holdings Ltd, the Chinese vegetable producer defending a claim from Next Magazine that it overstated its land holdings, has not exaggerated its assets, Macquarie Group Ltd said after visiting plantations.

Macquarie visited two of Chaoda's largest projects, which represent 17 percent of its farmland, and found "nothing to indicate that Chaoda was exaggerating its land bank", analysts Jake Lynch and Jamie Zhou said in a report dated June 9.

They used global positioning satellite technology and odometers to measure the plantations.

production
Chaoda Modern Agriculture plunged 34 percent in Hong Kong after Next Magazine reported on May 26 the company exaggerated the size of its farmland.

Support for the stock has also been curbed by allegations against Sino-Forest Corp by Muddy Waters Research that its stated timber holdings don't match Chinese city records, Lynch said.

"We walked away from the trip feeling comfortable, given that 100 percent of what we had visited bore out the company's claims," he said.

Macquarie analysts visited farmland spanning 105,000 mu, or 7,000 hectares, in two provinces, Macquarie said.

The analysts visited and verified Chaoda's three largest production bases in Hebei, which were cited in the Next Magazine article.

The analysts have visited about 28 percent of Chaoda's farmland over the past two years, the research report said.

Sino-Forest's unit Greenheart Group Ltd fell 8.3 percent to HK$1.44 (18 cents) on Monday in Hong Kong.

The shares plunged 50 percent after Muddy Waters, founded by short seller Carson Block, published a report on June 2.

Source: http://www.chinadaily.com.cn/business/2011-06/14/content_12693861.htm

My faith in Muddy Waters publications dropped a notch on this one.

[winston]

not vested

Chaoda Modern Subject of Hong Kong Market Misconduct Lawsuit

26 (Bloomberg) -- Chaoda Modern Agriculture Holdings Ltd., the Chinese food producer defending a claim from Next Magazine that it overstated its land holdings, is the subject of a Hong Kong government market misconduct lawsuit.

http://www.businessweek.com/news/2011-0 ... wsuit.html

[winston]

not vested

Tribunal rules against Chaoda
Tony Liaw and agencies

Thursday, September 29, 2011

Chaoda International Agriculture Holdings (0682) chairman Kwok Ho, chief financial officer Andy Chan Chi-po and George Stairs, a Fidelity portfolio manager, are suspected to have engaged in insider dealing, a local tribunal has ruled.

The Market Misconduct Tribunal yesterday said Kwok and Chan discussed a share placement with six institutional investors - Fidelity, AllianceBernstein, BlackRock, Wellington Management, Janus Capital and Boston Company Asset Management - on June 15 and 16, 2009.

Merrill Lynch (Asia Pacific) was the sole bookrunner in the placing exercise.

The two senior executives allegedly sold 374,000 shares at HK$5.30 per share on June 16.

Stairs, who was aware of the details of the placement in advance, arranged to sell the shares, which resulted in a gain of HK$1.98 million.

Chaoda aimed to raise HK$1.78 billion by placing 380 million shares at HK$4.60 each, representing a 12.9 percent discount to the stock's closing price of HK$5.28 on June 16.

The placement was announced on June 18, 2009, before the market opened. But the tribunal found that Stairs submitted a sell order at 11am on June 16, two days before the announcement was made.

It was handled by Fidelity's Hong Kong staff and was executed the same day at 4.09 pm.

The next day, at 5pm, Stairs placed a buy order for 630,000 shares at HK$4.60 per share. This order was executed on June 18.

The tribunal determined that the chairman and chief financial officer "knew or had reasonable cause to believe that Stairs would make use of the relevant information" to deal in Chaoda shares.

Further action by the tribunal will be announced later.

Kwok, 55, is a member of the Chinese People's Political Consultative Conference. He has a 19.3 percent stake in the fruit and vegetable producer.

Shares in Chaoda slumped 27 percent on Monday before trading was suspended.

Since May, Chaoda has also been fending off suspicions aired by a local magazine that it had exaggerated the extent of the farmland it holds.

In the meantime, a group of hackers, Anonymous Analytics, claimed in a 38-page report that Chaoda management has moved more than US$400 million out of the company "under the cover of inflated capex [capital expenditure] spending and related party transactions."

The company has raised more than US$1.1 billion from investors via share placements since its initial public offering in 2000.

Anonymous, however, has acknowledged it has an "indirect interest" in the company, where its related parties, including associates, partners, affiliates, consultants and clients, have shorted Chaoda shares.

http://www.thestandard.com.hk/news_deta ... 10929&fc=7

[iam802]

This stock has been breaking down since Q1 2010.

From 8+ to 1.8

[winston]

not vested.

Fidelity man says he did no wrong
Tuesday, February 07, 2012

George Stairs of Fidelity Management & Research believes share placement information he was given by the chairman and chief financial officer of Chaoda Modern Agriculture Holdings (0682) was public, a Hong Kong inquiry heard yesterday.

Chaoda management said nothing to Stairs to indicate he would be precluded from trading shares of the Chinese vegetable supplier, according to a letter from Fidelity's lawyers presented in evidence on the first day of a Market Misconduct Tribunal hearing.

Stairs, then a portfolio manager at Fidelity, traded Chaoda's shares after being told on a conference call by Chaoda chairman Kwok Ho and Andy Chan, its chief financial officer, about a June 2009 share placement before the information was public, the prosecutor alleges.

Stairs netted proceeds of HK$1.98 million for his funds by selling shares prior to the placement and then buying more in the stock sale at a lower price, according to a government notice.

Chaoda remains suspended.


http://www.thestandard.com.hk/news_deta ... 20207&fc=2

[kennynah]

this counter reminds me of...

[investar]

the burnt sausage is trading again