Debt and Scandal dog Singapore-listed China companies

While a few have succeeded in restructuring their finances, a number of Singapore-listed firms in China remain burdened with debt and even fraud.

According to The Business Insider, nine China-based companies listed on the Singapore exchange have either failed to repay bank loans or are in continuous talks with creditors after issuing convertible bonds. Delong Holdings and Sunshine Holdings are among the fortunate firms able to recover.

Aside from debt, scandals are also threatening to cease the existence of some Singapore-listed companies in China. Fujian-based Sino Environment Technologies is under investigation by the city state's Monetary Authority after being audited and questioned about the whereabouts of US$85 million worth of cash. The waste recovery group also defaulted on its bonds after witnessing a crash in its share price from S$1.30 to S$0.135.

Another bond default came from Heilongjiang-based China Milk Products Group following the milk scandal on the mainland last year. Majority of those who purchased convertible bonds sold by China Milk have exercised the money-back option, with the agricultural company reporting 73 percent decline in net profit in the three months to June 2009.