YuuZoo's latest disclosure opens a Pandora's box for SGX
Are companies allowed to post positive research reports - whether paid or independent - about themselves on the SGX website?
MAYBE it's only me, but I'm not comfortable with e-payments firm YuuZoo posting a positive research report about itself as an official release on the Singapore Exchange's (SGX's) website, especially when YuuZoo paid for the research in the first place.
If all companies start doing what YuuZoo did, then where do we draw the line? Should companies be allowed to post broker reports as well? Since broker reports are not paid research and are purportedly independent, why not? But what if the reports - paid or independent - are negative? In the interests of consistency, should companies also feature them?
This leads to a more pertinent question: Shouldn't SGX's website be only for information relevant to investment decision-making, like material and relevant business-related developments such as earnings announcements, corporate fund-raising, significant purchases and divestments, and changes in key officers?
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