P Chips Frauds

P-Chips Frauds refers to a series of management-led bankruptcies of P-Chips companies, which trade on the Hong Kong Stock Exchange. During the bankruptcy process, after delaying the receivership procedures, management buys the income-generating assets back. Afterwards, the company winds up, but it has no valuable assets left. As a consequence, onshore creditors (including Hong Kong-based) receive 80 cents on the dollar, offshore creditors receive 20 cents on the dollar, and shareholders do not receive anything. This outcome is very similar to a series of corporate scandals in Singapore and to the China Stock Frauds in the United States.
People involved in these processes have suggested that corporate frauds in Chinese companies incorporated abroad might as well be one of the greatest swindles ever perpetrated in history, whereby Chinese nationals deprive foreigners of their wealth by deceit. Nevertheless, as of December 2010, no major investigation has ever been launched by Hong Kong authorities, as opposed to their American counterparts.
Partial List of P Chips Frauds
For a list of suspended or delisted companies in Hong Kong, go to the P Chips article. For a list of similar frauds in the United States, go here. And for a list of similar frauds in Singapore, go here.
Akai Holdings & Grande Holdings
Asia Aluminum (SEHK: 930) (Bermuda)
Euro-Asia Agricultural Holdings & Yang Bin
First Natural Foods () (Bermuda)
Fu Ji Food and Catering () (Cayman Islands)
Shanghai Land Holdings & Zhou Zhengyi

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