THE Singapore Exchange Regulation (SGX RegCo) issued a “trade with caution” alert for Dasin Retail Trust on Monday (Aug 21), as its trading activity review revealed that an individual seemed to be buying units of the China retail property trust to maintain the price.

SGX RegCo said the trust’s closing price had stayed in the S$0.089 to S$0.094 range between Jul 17 and Aug 17 – the period this individual was buying the units. 

The individual was not named, but SGX RegCo said that its initial findings suggest that he or she is connected to Dasin.

SGX RegCo said this individual’s purchasing activity was “particularly unusual and aggressive”, following negative announcements by Dasin on Aug 11 and Aug 14 regarding two notices of demand it had received.

The first announcement pertained to a notice of demand dated Aug 4, issued by the Bank of China’s Singapore branch, declaring that events of default had occurred, and are continuing under a certain “Offshore Facility 3”.

According to that announcement, the total outstanding amounts of S$55.6 million and HK$297.6 million (S$51.6 million) under the facility as at Jul 25, 2023, plus all additional interest, default interest and indemnity obligations, were immediately due and payable.

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The second announcement related to a notice of demand dated Aug 10, issued by Maybank’s Singapore branch, declaring that one or more events of default had occurred and are continuing under a certain “Offshore Facility 1”.

Outstanding principal sums of US$129.9 million and S$234.1 million, plus interest of US$6.8 million and S$10.8 million as at Aug 10, were immediately due and payable, according to this announcement.

SGX RegCo said that between Aug 14 and Aug 17, the individual had, on seven instances when the price of Dasin units fell to intraday lows, made purchases that pushed up the unit price. 

In particular, when the unit price fell to an intraday low of S$0.063 on Aug 16, the individual made purchases that pushed the price up by S$0.029 or 46 per cent, and the counter ended up closing at S$0.092, SGX RegCo said.

“SGX RegCo has referred the matter to the authorities for their necessary actions,” it also said.

Units of Dasin Retail Trust closed 6.9 per cent higher at S$0.093 on Monday, before the announcement.