The ASX is taking a tougher stance on Chinese based companies who come to Australia to raise capital from Australian Investors. It is well documented in The USA , where regulators are kicking fraudulent companies of the AIM second board. The primary concern of AUS and American regulators is that the financial figures provided to investors are simply fiction, and the real purpose of the creating the company was always to steal investor money.
The ASX has a responsibilty to protect Australian shareholders from criminal directors. By kicking fraudulent companies off the registry, they can be stopped from raising any future money. If CDC can't satisfy the ASX that it's financial facts are honest and represent a genuine enterprise, they should be kicked off the ASX. Unfortunately, it's usually too late for current investors to get their money back, even harder when directors are based overseas. It's not a good story and sadly it happens very often, not just Chines directors, plenty of criminal Australian directors. Our job is to me more careful when we invest , must look very closely at the history of directors and their family.
CDC Price at posting:
6.6¢ Sentiment: Hold Disclosure: Held
