Dear MAS and CAD,

 

As a shareholder of Medtecs International and a concerned member of public, I would like to bring to your attention the Breaches of the SFA by Mr Xia Junwei, Deputy Chairman of Medtecs International, a listed company in Singapore. 

 

 

According to the SFA as well as this link by MAS:  https://www.mas.gov.sg/-/media/MAS/Regulations-and-Financial-Stability/Regulations-Guidance-and-Licensing/Securities-Futures-and-Fund-Management/FAQ-on-Disclosure-of-Interests-003.pdf

 

A substantial shareholder and/or director is required to report a change of interest within 2 Days of the Change of Interest. 

 

Mr Xia Junwei through his broker disposed of his 14% on or before 30th January 2020.

 

He &ldquo claims" he was only informed of the change on 6th February 2020. But even when he found out that he had disposed and breached the rules, he failed to disclose it until 14th February to the Company when the Chairman asked. It was only reported on 17th Feb. 

 

In his best case, he was late by 6 days taking into account his purported claim then he found out on 6th Feb and only reported it on 14th Feb. 

 

In his worst case, he was late by at least 2 weeks.

 

As a result of his actions and during this trying period of Covid-19 virus, Mr Xia Junwei and his proxies made off with 10 million SGD in profit, and wiped 100% of the market value of Medtecs International. 

 

 

 

Blackout Period The SGX Listing Rules state that a listed issuer and its officers " should not deal in the listed issuer&rsquo s securities during the period commencing two weeks before the announcement of the company financial statements for each of the first three quarters of its financial year and one month before the announcement of the company&rsquo s full year financial statements (if required to announce quarterly financial statements), or one month before the announcement of the company&rsquo s half year and full year financial statements (if not required to announce quarterly financial statements)&rdquo . This is often referred to as the blackout period. In line with the Listing Rules, Medtecs International required its officers not to trade in Medtecs International securities during the period beginning one month before the release of the final-year financial results and ending on the date of release of the results itself. 

 

 

 

As a shareholder, stakeholder and concerned member of public, I urge the MAS and CAD to act decisively to show its impartiality and effectiveness of both departments in investigating and enforcing breach of rules by Listed Companies&rsquo Directors. As of my present, Mr Xia Junwei is mocking and pissing on the reputation of the SFA, MAS and CAD because despite his Flagrant and Illegal Conduct, NO ACTION or Enforcement has been taken against him. 

 

In fact, that public rumors or murmurings within the trading circles that Mr Xia Junwei has links to the authorities hence providing Immunity to his illegal actions. I do hope that MAS and CAD can take swift, decisive public action to restore the public&rsquo s faith in MAS and CAD. Note also that during period of trades, Brokerage Houses seem to have gotten wind of this action before retail traders with UOBKayhian and POEMS banning internet trades. This is highly alarming and we urge MAS, CAD to do a full investigation and please inform the Public of ANY Enforcement Action. 

 

Singapore claims to be a Trusted Financial Hub but the Lack of Enforcement, Clarity when Rules and Laws are broken only serves to undermine our reputation. 

 

Best,