What's the story behind S-chips?

the same sum of money can be transferred between different bank accounts for the purpose of showing a particular quantum on the bank statement. $50m can be shared between 3 or 4 companies as cash reserves!!!
 
Co A cash reserve of $50m + Co B cash reserve of $50m + Co C cash reserve of $50m = $50m deposits in the bank (not $150m)

Hmmm... i tot bank confirmation letter is something along the lines of "how much money is in this account as at 31 December 2011"?
Since the specific date is required, in that case, how can a sum of money be in two separate places at one time?
Still confused...
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[shArk 21-06-2012]:

the same sum of money can be transferred between different bank accounts for the purpose of showing a particular quantum on the bank statement. $50m can be shared between 3 or 4 companies as cash reserves!!!
 
Co A cash reserve of $50m + Co B cash reserve of $50m + Co C cash reserve of $50m = $50m deposits in the bank (not $150m)

Banks in china provide a lot of creative services . One my friends have a few million rmb cash in one bank . During last few days of the month, his bank will ask him to invest the money into a special invest product. In return, he earns addtional 1% for the period of 7 days. Now i know why they need his money.

Welcome to China. Banks in China have very different ways of treating cash. They issue 票据 on the back of cash deposits to companies who need confirmation of their cash levels. These companies bring the 票据 to another bank to ask for more cash confirmation. The whole cycle can take many twists and turns. The way PRC companies play their P&L is also very similar to how several Singapore companies twist their accounts. Receivables are jack up to push profits while cash flows are managed with fund raising exercises subsequently. If you don't want to do your homework and learn the market, the easy way is just to buy blue-chip stocks and REITs. Having said that, I think REITs becoming increasingly risky. There are financial engineering coming into some of the recent REITs transactions. Do take note. Cheers!

Enough bashing of S-chips. There are many good ones --- Foreland Fabritech, Eratat Lifestyle,  Yangzijiang Ship, Sino Grandness, etc.

S-chips, your turn to rise! China’s central bank has just given a sweet surprise for S-chips. A cut in iinterest rate, which lowers borrowing and deposit rates.

Central bank also enabling banks greater leeway in setting their own lending rates at a discount to the benchmark.

No matter how much stimulus China puts. S-chips will be marginalised due to the many fraud cases in this sector. The best push will be a change in China's regulation where S-Chip owners can be criminally liable by the country they list in. And China is committed in the repritation of them to that country