SINGAPORE - The Singapore Exchange (SGX) is urging investors to be cautious when dealing in the shares of Mainboard-listed Zhongmin Baihui Retail Group.
The share price of the company, which owns and operates 12 department stores in Fujian and Jiangsu in China, has defied the bearish market sentiment and remained steady from Oct 26 last year to Feb 4. It closed up one cent or 0.57 per cent at S$1.75 on Friday.
"SGX's review of the trades in Zhongmin Baihuishares during the relevant period showed that a small group of individuals was responsible for over 90 per cent of the on-market buy volume of the shares. This group of individuals appears to be connected to each other," SGX said in a statement released yesterday after market close.
The bourse is reviewing the shares trading and will take the necessary actions, it added.
The warning came as the SGX continues to enhance its regulatory framework to improve Singapore's market quality.
S-chips like Zhongmin Baihui have remained at the centre of the discussion, with some questioning the governance of these companies based out in China.
However, warnings issued by the SGX on trading irregularities have not been reserved for S-chips, with local engineering service provider Koyo International being targeted last month.
A small group individuals was responsible for 60 per cent of its share trading between Oct 26 and Jan 14, during which the share price had remained largely resilient against the selloff that hit the overall market, SGX said in a statement.
Koyo's shares yesterday ended flat at 6.8 cents, over 80 per cent lower compared with the level prior to the SGX warning.