CEFC: Small number of offshore accounts accounted for 40% of buying

SGX urges caution when dealing in CEFC shares; notes small number of offshore accounts accounted for 40% of recent buying

Singapore Exchange (SGX) today notes CEFC International Limited’s 10 August announcement of a placement of about 705 million shares at $0.35 each.

This follows the company’s 21 July reply to SGX’s public query, saying that it was not aware of any information about the company that was not previously announced, apart from a potential joint venture and related funding, which if known might explain the trading activity in its shares. SGX issued a Trade with Caution warning after CEFC’s 21 July reply.

The share placement followed the increase in the price of CEFC shares from $0.034 on 10 July 2015 to $0.3650 on 6 August 2015.

During this period, SGX issued 2 public queries to CEFC including the one mentioned above. SGX reviewed the trading activities in CEFC shares during this period and observed that buying volume was concentrated in a small number of offshore accounts. Together, these accounts accounted for more than 40% of the total traded volume during the period.

SGX is reviewing CEFC’s announcement and the trades in its shares, and will work with the relevant regulatory agencies to pursue actions to maintain a fair, orderly and transparent market. Shareholders and potential investors should exercise caution when dealing in the shares of CEFC International Limited.