The Singapore Exchange (the “SGX”) refers to China Hongxing Sports Limited’s (the “Company”) announcements of 6 August 2009, 24 August 2009 and 7 September 2009 in relation to JF Asset Management (Singapore) Limited’s (“JFAM”) notice of cessation of substantial shareholding in the Company.
The Company explained in its announcement on 7 September 2009 that it was unable to verify whether or not it had received notifications from JFAM relating to changes in shareholdings between 8 January 2008 and 27 February 2009.
When JFAM notified the Company on 31 July 2009 of its cessation as a substantial shareholder, the Company took six days before releasing the information to the market. This is too long. SGX Listing Rules require immediate disclosure of such information.
It appears that the Company does not have proper systems and procedures in place to receive, track and announce information in a timely manner. Full and timely disclosure is crucial to the operation of a fair, orderly and transparent market. SGX has required the Board to devote adequate resources to ensure that such episodes will not recur. The Board has undertaken to review and strengthen its internal procedures in response to this matter and will report to SGX what it has done.
SGX reminds all listed companies to put in place proper systems and procedures to comply with their obligations under applicable laws, rules and regulations.