SINGAPORE (Apr 24): The Singapore Exchange Regulation (SGX RegCo) says that it is aware of the short-sell reports on Best World that was published earlier today, which led to a 9.0% plunge in Best World shares to close at $1.62 on Wednesday.

Trading of shares in Best World has been halted.

In an email to <i>The Edge Singapore</i>, SGX RegCo says, “SGX RegCo is aware of Bonitas Research’s short-sell report on Best World. We posed earlier today a Trading Query to the company and its shares have since been halted. We expect the company to call for a full independent review of all matters raised in the report so that shareholders will have a complete picture and can make informed decisions. We expect to be consulted on the terms of reference of the review and will require the reviewer to report directly to us and the company’s Audit Committee.”

Earlier today, SGX RegCo posed a Trading Query to Best World regarding its unusual price movements today.

It asked the group if it was aware of any information not previously announced concerning the group, and if the group was aware of any possible explanation for the trading.

SGX RegCo also asked the group to confirm its compliance with the listing rules.

This is the second query issued to Best World in the past three months.

To recap, Best World was hit by damning reports by two separate short sellers on Wednesday morning: Bonitas Research and Valiant Varriors.

<hr/><a href="https://www.theedgesingapore.com/best-world-hit-damning-report-short-seller-bonitas-research-shares-down-9" target="_blank">See: Best World shares down 9% on attacks by short sellers Bonitas Research and Valiant Varriors</a><hr/>

Bonitas says Best World is a “fraud” and alleges its sales in China are a fraction of what was reported to its shareholders. It suggests that Best World fabricated at least $31 million of its reported 2017 sales to its “one major customer” called Changsha Best.

Separately, Valiant Varriors, in its short sell research blog, has published the first instalment of a two-part report that alleges Best World continues to engage in multi-level marketing (MLM) in China, which is illegal

SGX RegCo queries Best World; expects full independent review

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