MMX relying on fake multi-billion-dollar Chinese investors, says association

Thursday, 29 April 2021 20:11:16 (GMT+3)   |   Sao Paulo
       

The Brazilian association of investors, ABRADIN, has filed a request at local securities exchange commission, CVM, demanding the trade suspension of shares of iron ore company MMX, which currently trades its shares at São Paulo stock exchange B3.

ABRADIN said a supposed Chinese investor behind MMX, Touchstone Capital, doesn’t have enough capital to carry on promised investments that could reach billions of dollars. ABRADIN requested shares of MMX to be suspended until the company clarifies all facts. ABRADIN also requested CVM to forward its notice to federal prosecutors.

ABRADIN said Touchstone Capital, the investment arm of China Development Integration Limited (CDIL), has a capital of about $128.64 or HKD 1,000.00.

That company’s capital contradicts MMX’s already anticipated promise of multi-billion-dollar investments by CDIL. ABRADIN also said CDIL’s “only director” is Andy Lai. The association claimed all other investors listed at the CDIL site are “fake.”

CDIL claims in its corporate website that its “investment arm” Touchstone Capital manages about $100 billion in projects, as confirmed by SteelOrbis. However, email communications between ABRADIN and CDIL seem to contradict the Chinese company’s claims.

ABRADIN said CDIL denied that Touchstone Capital was the investment arm of CDIL. “We are not this company’s (investment arm). We are (an) industry and finance platform,” said Kenny Song, chairman at CDIL in a response to ABRADIN.

 


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