Warning on share price manipulation

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VietNam News English - 43 month(s) ago 3 readings

Securities regulators have issued a warning about a new form of share price manipulation involving falsification of documents issued by administrative agencies.

HA NOI —

The warning arose after a member of the online forum f319.com posted a fake dispatch on July 27 bearing the signature of State Securities Commission vice chairwoman Vu Thi Kim Lien. The faked document said that the commission had asked the Ministry of Public Security to investigate manipulation claims against Sao Vang Rubber Co (SRC).

This forum member thereby warned other investors to sell all of SRC shares in order to avoid exposure to risk.

"Some small investors have recently falsified commission documents to distort information about enterprises," the commission warned yesterday. "Enterprises and investors should immediately report to the commission any doubts" about the verity of documents.

The commission noted that the posted document, if read closely, demonstrated marked dissimilarities to authentic documents issued by the commission in terms of presentation and language.

It nevertheless managed to fool a number of members of the investor forum who then sold the SRC shares they were holding. Since July 27, when the fake document was posted, SRC share prices have plunged by 20 per cent, compared to an average market decline during the period of only 3 per cent.

SRC closed yesterday's session at VND12,700 per share.

"The purpose of this falsification was to devalue the SRC share price," a source from SRC told Viet Nam News on condition of anonymity.

The fake document was devastating to the company and the person who made it should be strictly punished, the source said.

SRC general director Le Cong An also reaffirmed on Thursday that no members of its board had colluded with any investors to release incorrect information about its plans to relocate its headquarters pending its ability to find a partner to invest in a new real estate project. — VNS

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