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**dodadaxia** · 01-17-2012, 08:40 AM

Singapore Exchange (SGX) withdrew a lawsuit seeking an order to enforce its listing rules on a Chinese firm after a meeting between lawyers for the companies.

The lawyer for China Sky Chemical Fibre Co. is seeking further instructions from the Quanzhou City, Fujian-based company, according to a statement yesterday from Southeast Asia’s biggest bourse by value of shares traded.

Singapore Exchange, also known as SGX, sued the Chinese nylon-fiber maker and four of its Chinese directors on Jan. 6 to compel the appointment of a special auditor to investigate “interested-party transactions,” a failed land acquisition and certain costs. A closed hearing was held at Singapore’s High Court yesterday.

“There’s little comfort in SGX withdrawing the lawsuit,” said David Gerald, president of the Securities Investors Association of Singapore, which represents 70,000 retail investors. “There’s still no word on whether China Sky will comply or when the share suspension will be lifted. Shareholders are in a limbo.”

Singapore investors have pressed for tougher rules as accounting scandals have wiped out large portions of the market value of China-based firms, including Sino-Forest Corp. (TRE) and FerroChina Ltd (FRC). Singapore Exchange had accused China Sky of “flagrant disregard” of its directive.

China Sky, in minutes of a Dec. 24 meeting in Singapore between its Chief Executive Officer Huang Zhong Xuan and the bourse’s Lawrence Wong, submitted to the exchange that some of its demands “were extremely unreasonable.” China Sky released the minutes of the meeting in a Jan. 6 statement to the Singapore Exchange. The Chinese firm said in the statement it would “continue to communicate with the SGX to resolve the impasse.”

‘More Time’
“The board of directors may need more time to be able to give me meaningful instructions on how to respond to the present proceedings,” China Sky’s lawyer, Leonard Chia, said.

Trading in China Sky shares has been suspended since Nov. 17, a day after the exchange first ordered the company to appoint the special auditor. The shares had tumbled 96 percent from their peak of S$2.74 in October 2007.

Er Kwong Wah, Lai Seng Kwoon and Yeap Wai Kong, the three Singaporean independent directors who quit on Jan. 5, declined to comment on China Sky’s dispute with the exchange, saying it was “inappropriate.”

The case is Singapore Exchange Securities Trading Ltd. v. China Sky Chemical Fibre Co. (CSCF), Huang Zhong Xuan, Cheung Wing Lin, Song Jian Sheng and Wang Zhi Wei OS11/2012 in the Singapore High Court.

01-17-2012, 08:40 AM	#2
dodadaxia Join Date Oct 2005 Posts 387 Senior Member	Singapore Exchange (SGX) withdrew a lawsuit seeking an order to enforce its listing rules on a Chinese firm after a meeting between lawyers for the companies. The lawyer for China Sky Chemical Fibre Co. is seeking further instructions from the Quanzhou City, Fujian-based company, according to a statement yesterday from Southeast Asia’s biggest bourse by value of shares traded. Singapore Exchange, also known as SGX, sued the Chinese nylon-fiber maker and four of its Chinese directors on Jan. 6 to compel the appointment of a special auditor to investigate “interested-party transactions,” a failed land acquisition and certain costs. A closed hearing was held at Singapore’s High Court yesterday. “There’s little comfort in SGX withdrawing the lawsuit,” said David Gerald, president of the Securities Investors Association of Singapore, which represents 70,000 retail investors. “There’s still no word on whether China Sky will comply or when the share suspension will be lifted. Shareholders are in a limbo.” Singapore investors have pressed for tougher rules as accounting scandals have wiped out large portions of the market value of China-based firms, including Sino-Forest Corp. (TRE) and FerroChina Ltd (FRC). Singapore Exchange had accused China Sky of “flagrant disregard” of its directive. China Sky, in minutes of a Dec. 24 meeting in Singapore between its Chief Executive Officer Huang Zhong Xuan and the bourse’s Lawrence Wong, submitted to the exchange that some of its demands “were extremely unreasonable.” China Sky released the minutes of the meeting in a Jan. 6 statement to the Singapore Exchange. The Chinese firm said in the statement it would “continue to communicate with the SGX to resolve the impasse.” ‘More Time’ “The board of directors may need more time to be able to give me meaningful instructions on how to respond to the present proceedings,” China Sky’s lawyer, Leonard Chia, said. Trading in China Sky shares has been suspended since Nov. 17, a day after the exchange first ordered the company to appoint the special auditor. The shares had tumbled 96 percent from their peak of S$2.74 in October 2007. Er Kwong Wah, Lai Seng Kwoon and Yeap Wai Kong, the three Singaporean independent directors who quit on Jan. 5, declined to comment on China Sky’s dispute with the exchange, saying it was “inappropriate.” The case is Singapore Exchange Securities Trading Ltd. v. China Sky Chemical Fibre Co. (CSCF), Huang Zhong Xuan, Cheung Wing Lin, Song Jian Sheng and Wang Zhi Wei OS11/2012 in the Singapore High Court.
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