We are not surprised by an irregularity, in this case a collapse, in China Baoli Technologies Holding (164 HK) share price. Performing a social network analysis had raised considerable flags which we discussed here.
In this article, we summarize and advise on, in a few bullet points, HKSE’s consultation paper on new 13.50A rule – which would suspend trading on companies with weak internal control/fraudsters leading to auditor disclaimer or adverse of opinion.
In this article, we play with our relationship risk tool that tracks potentially fraudulent officers as they moved to other companies. Our conclusion is that our tool helps you find shortselling investments or reduce left tail risk.