Three Malaysian Market Makers (Commissioned Dealer Representatives) were Sanctioned and Fined by Bursa Malaysia in a Circular. They were investigated for misleading Investors and Asset Managers by creating a false and misleading Appearance of Active trading. several instances of False trading activities were exposed. According to the findings of Bursa Malaysia, the shares of both YNH PROPERTY BHD, KLSE:3158 (YNH) and RAPID SYNERGY BHD, KLSE:7765 (RAPID) were manipulated to create false trading activities.

The majority of trading of these counters is by insiders and related parties of the YU Syndicate controlled by YU KUAN CHONYU KUAN HUAT (Pictured above), and represented more recently by poser CHAN WENG FUI (AKA Daniel Chan).  Notorious investors with a long history of using Public money and lending to further their Ambitions based on creatively designed assets as collateral to gain capital for various business activities.  Sources close to YU KUAN CHON say he prides himself as an expert in manipulating Malaysia’s public markets to fit his needs.

Tiong Siew Ngaik (TIONG) was sanctioned with a public Reprimand; Fined RM392,000 and RM467,000; and deregistration from Bursa Malaysia Securities.  Kenanga Investment Bank Berhad employed TIONG at the material time.

Yew Hock Ming (YEW) (Pictured above) was sanctioned with a public Reprimand; Fined RM188,000 and RM235,000; and deregistration from Bursa Malaysia Securities.  RHB Investment Bank Berhad employed YEW at the Material Time.

Ling Chen Yew (LING) was sanctioned with a public Reprimand; Fined RM155,000 and RM155,000; and deregistration from Bursa Malaysia Securities. AFFIN Investment Bank Berhad employed LING at the Material Time.

Creating a false and misleading market for these counters helps the large stakeholders like the YU Syndicate members which collectively disclose control of approximately 62% of YNH and 22% of RAPID to obtain favorable lending facilities utilizing pledged shares of RAPID and YNH as collateral. Lenders believe that they can sell the pledged shares to the open market in the event of default.  Commonly called a Margin call.

The majority of trades for both these counters are between the YU Syndicate members themselves, in the event of default, there would likely be no market for these shares rendering the collateral worthless and the bank without the security it is legally required to maintain.

YEW HOCK MING is not only the Sanctioned Commissioned Dealer Representative in this case. He is also a trusted Director of many of the YU Syndicate companies that do business with RAPID and YNH. This begs the question, why would the YU Syndicate maintain business with one of the people busted for illegal trading activity on its own shares? Likely a reward for his efforts.

A review of YNH 2020 and 2021 Audited Accounts alongside Yahoo Financial daily trading data for the period of 19MAY21-31MAR22, shows that the total trading of YNH for the accounting period collectively is a meager 15,044,300 shares.  These shares were traded in small amounts averaging only 70,000 shares per trading day.   

A comparison of the position of the TOP 30 shareholders in the Annual Reports of 2021 and 2022 shows:

  1. CHAN WENG FUI (Poser for YU KUAN CHON) acquired at least 19,881,200 additional shares, more than the total shares traded in the same period.
  2. YU KUAN CHON increased his position by an additional 1,519,627
  3. YU KUAN HUAT sold 2,600,000 of his shares. 
  4. CHAN SOW KENG (Wife of YU KUAN CHON) sold 4,300,238 shares and later purchased at least 3,953,258 shares costing her 346,980 shares as the prices increased from her trading activities, while the value of the overall shares count remained almost the same. 
  5. LIM FUNG NENG, Former Director of RAPID and close friend and associate of YU Syndicate sold off 7,482,575 YNH shares.

One does not have to wonder what this exercise is all about.  Keeping up the trading volumes even at a loss to insure that the Lenders feel comfortable that there is enough liquidity to cover the risk in the YU Syndicate Pledged Security Accounts. 

Just looking only at the reported YU Syndicate activity above, 25,701,065 were purchased in lots that averaged daily volumes of just 70,000 shares for the period.  These same people sold at least 14,382,813 shares.  This back-and-forth selling allows them to not only create false liquidity for the Bank but also increase the share price and perceived values of pledged securities to the bank. Given that there is no recent activity from Bursa Malaysia, it is likely that the YU Syndicate has found a legal way to keep an appearance of active trading for its Lenders.

Remember, there were only 15,000,000 shares reported by bursa as traded for the same period.   So the data indicates that more than 100% of the traded shares were by the YU Syndicate. So, if the YU Syndicate defaults, who will be around to buy the shares when this house of cards eventually collapses and the Lenders call a margin call and recoup the loans?

To further the risk to Lenders, the YNH Annual Audited statements for 2020, 2021, and 2022 all show that YU KUAN HUAT and YU KUAN CHON’s total interest in share count as reported in the Director’s interest has not changed going back at least 3 years. Directors’ interest covers all the shares that are held by any documented Related parties.  That means that the shares traded back and forth between YU Syndicate members have had a ZERO effect on the overall interest and holdings of YNH shares of the directors.  This indicates that there is no other market for YNH shares other than from the left pocket to the right pocket of these directors using related parties for a long time.

What happens when lenders finally figure out that there is no market for the collateral that collectively supports lines of credit totaling what insiders report to be as much as RM750 Million in lending to the various YU Syndicate members?

This is part 1 of a 5 part exposé our team is working on about the YU Syndicate and its business dealings.  Information used in this story has been obtained primarily from public and corporate records.  This investigation is ongoing, and the facts and data will lead us to the truth.  Stay tuned for more to come in the following weeks.    

If you have information about the YU Syndicate, YHN, RAPID, or other related parties mentioned in this article, feel free to email us. If you are concerned about your privacy, please use a fresh email account dedicated solely to this purpose. Contact us via the contact us links or by email. We welcome public assistance and will go to great lengths to protect our sources.

ERIKA JOHNSON

Erika has been writing stories since high school as a campus journalist to college. After pursuing a Bachelor’s Degree in Communication, she was employed in a local newspaper, radio station, and finally in this esteemed organization wherein she embarks on investigative reports. I believe in Writing the wrongs. for new submissions, email me directly [email protected]