Pacific Andes International Holdings Ltd. and shares of its units posted record declines after they said the companies are being investigated by regulators in Singapore and Hong Kong.
Pacific Andes International slid 31 percent in Hong Kong as the city’s Securities and Futures Commission obtained documents from its office for its probe this week. Pacific Andes Resources Development Ltd. lost 29 percent in Singapore trading while its unit China Fishery Group Ltd. plunged 49 percent to a record low amid the investigation by the island republic’s police and central bank.
“It’s quite serious when Commercial Affairs Department gets involved,” said Bernard Aw, a market strategist at IG Asia Pte in Singapore, referring to the country’s financial police. “They won’t announce such investigations unless they have strong evidence of wrongdoing. Investors should take a wait and see approach.”
The probe into the frozen seafood and deep-sea fishing companies comes as Singapore said earlier this month it’s seeking to boost investor confidence after a stock rout in 2013 erased about S$8 billion ($5.6 billion) in the value of three commodity companies. The city’s financial police warned in its annual report there will be “many” joint investigations with the central bank to come.
China Fishery’s notes also slumped to a record low. The 9.75 percent 2019 bonds slid 34.5 cents on the dollar to 59.25 cents as of 5:56 p.m. in Singapore.
The deep-sea fishing group, with operations in Peru, said in a exchange filing late Thursday it received a notice from Singapore regulators on the offense under the securities law. The probe dealt a blow to the company, which reported a slump in its third-quarter profit.
Singapore’s central bank and financial police are jointly conducting the investigations into Pacific Andes Resources and China Fishery, and have obtained documents from both companies, the Monetary Authority of Singapore said in an e-mailed statement, declining further comment as the probe is ongoing.
China Fishery and its parent Pacific Andes Resources said they will cooperate with the investigation. Geoff Walsh, a spokesman for the Hong Kong parent, said the group is bound by confidentiality rules about the nature of investigations and has no further comments beyond its stock exchange announcements.