When will s- chips see the sun?

Hi Ah Huay, S-chips indeed can be very profitable if they dun self-detonated. Some of the better managed ones: Sound global Yangzijiang Problem is, valuation is not actually dirt cheap. Others with potential but with many different sets of problems Hu an cable - very high gearing and low margin, can be value destructing, but is in a booming sector, and if the higher margin cables can take off, it can be rewarding. (NO vested) Anchun- loss making company, but is exposed to the upstream of the agriculture sector, has sound R&D capabilities but the pent up demand of underinvestment for agriculture, so catch on sooner or later. (Vested and biased) Companies in the textile sector. The most dangerous minefield, but in my opinon, the most profitable if you miss all the mines and grab the flag at the end of field, many companies that have fraud issues in recent years come from this sector, and many are flashing red flags all over the price, so much so that many are trading at ridiculous discount to even cash per shares. Of the few i researched on, china fibreT, gaoxian (I exited before it suspend trading), foreland, fuxing, qingmei, ziwo, china taisan, I must say foreland still have the least red flags and is most promising. But be mindful boss sell a hugh stake and dividends stopped.

Only BBs and handfull of professionals/seasoned players consistently make money in S-Chips. Almost all retail investors have lost money or sitting on huge paper loss. I dare say almost all S-Chips are now trading at below their IPO prices, and the total paper loss is staggerrig. Yes you can make money here, but you can't just be a follower.

Well, these were good advices and serves the purpose of this blog. Better than asking one not to ask questions. Think Joy and some of us would have learnt something here. It all depends on one's risk level, which is proportional to the return it gets. For S-chips, always look for good governance, eg.GIC is a major shareholder in CMZ and its oversight in corporate governance. Midas is run by reputable Singaporean executives, though the business is in China. I do believe in the China story. Your choice.

The reason why most (not all) s-chips are trading below their IPO prices is because the Shanghai Composite and Chinese stocks all around the world are now trading at a 3.5 year low - at comparable levels to end 2008-early 2009. 
Few Chinese stocks will want to IPO at these kind of prices which is why no s-chips have listed in Singapore since end 2010 (Yamada Green) - it's just like how few to zero Singapore companies would want to IPO in Singapore if the STI was at 1500. You wouldn't get good value for money selling shares to the public when sentiment is so bad. Did any companies IPO in Singapore between December 2008 and March 2009? 
Chinese stocks are undergoing a deep bear market. Few stocks list when valuations are at basement levels - it makes little sense to. This is why it is not statistically surprising that during a deep bear market, many stocks are trading below their IPO valuations, because the majority of stocks list during a bull market. 
One s-chip that has gone up significantly since IPO however is Sino Grandness. Sino Grandness listed in November 2009 at 29 cents - it is now more than 50% higher at 46.5 cents. The fact that in November 2009 the Shanghai Composite was about 60% higher (>3300) than it is now makes this even more commendable. Sino Grandness raised $16.9 million in their IPO - in the last quarter alone they made close to that amount - in just a single quarter. Make of it what you will. 
 
 
 
 

Yes ..same everywhere .. every country have good stock and bad.. Pick the better ones and you will be rewarded when China recovers .. the recovery is long overdue and thus most S-chip are at super low valuation .
Yes there are risk ..since they are negected .. well higher risk higher return! your choice Joy .

Isn't it better to buy these stocks now as they are cheap and below IPO price. Need to selectively pick and need good goverance too. Or do you want the price to run up before you invest? That's the difference betw value investor and follower, and esp so if Joy can hold long term. Good luck.