SGX retreats while China Sky lawyer seeks further instructions

Whatever happened during the closed hearing on 16 January 2012 must have worked.

A Bloomberg report said:

Singapore Exchange (SGX) withdrew a lawsuit seeking an order to enforce its listing rules on a Chinese firm after a meeting between lawyers for the companies.

The lawyer for China Sky Chemical Fibre Co. is seeking further instructions from the Quanzhou City, Fujian-based company, according to a statement yesterday from Southeast Asia’s biggest bourse by value of shares traded.

Singapore Exchange, also known as SGX, sued the Chinese nylon-fiber maker and four of its Chinese directors on Jan. 6 to compel the appointment of a special auditor to investigate “interested-party transactions,” a failed land acquisition and certain costs. A closed hearing was held at Singapore’s High Court yesterday.

“There’s little comfort in SGX withdrawing the lawsuit,” said David Gerald, president of the Securities Investors Association of Singapore, which represents 70,000 retail investors. “There’s still no word on whether China Sky will comply or when the share suspension will be lifted. Shareholders are in a limbo.”