I think the post was referring to the safety of keeping the cash in Australia where it is easier to track movements of money than in China, rather than the relative stability of each banking system.
If the cash was in Australia (not practical from an operational point of view of course) it would be easy to see if the money was withdrawn/stolen. While the cash is in China there is always a risk it could go 'missing'. It's naive to think that the cash can't move from a Chinese bank account without director sign off - that's just BS to calm investors - remember this is China, the bank manager isn't going to wait for the hot shot aussie to step into the meeting room for a signature lol (they probably have no idea what documents they sign anyway and Chinese legal docs are a bit confusing). I think a reason SBB trades below cash is due to this risk. In Australia we only really see companies trading below cash if they are burning cash like crazy (the financials suggest this is not the case at SBB).
The important question to ask yourself is whether you trust management to keep the cash in the business to grow it for the the long-term rather than him dashing with the cash (short-term gain for him).
DYOR
SBB Price at posting:
6.5¢ Sentiment: None Disclosure: Not Held
