
BEIJING, June 2 -- A company traded on the Shenzhen Stock Exchange for more than two years faces being delisted for fraud in its initial public offering (IPO).
Electrical equipment manufacturer Dandong Xintai Electric received an advance notice of penalties from the China Securities Regulatory Commission (CSRC) on Wednesday night, China Securities Journal reported on Thursday.
Dandong Xintai was convicted of providing fake financial data in its IPO application and releasing false information in regular reports. The firm will be fined and two personnel held responsible will also receive fines and be permanently banned from entering the stock market, the notice said.
Once the final penalty statement reaches the company, trading of its shares will be suspended. As Dandong Xintai's presence on the stock market is based on illegality, it will almost certainly exit the market, becoming the first to be delisted from the ChiNext Index, China's NASDAQ-style board of growth enterprises, and the first to be delisted from a Chinese stock index for IPO fraud, the newspaper said.
Before this, a company traded on the Shanghai Stock Exchange for more than two decades, Zhuhai Boyuan Investment Ltd., was finally delisted on May 11 over violation of information disclosure rules, becoming the first to be delisted on the Chinese mainland as China's stock regulator tightens delisting procedures to protect investors.
The CSRC began an investigation into Boyuan in June 2014, leading to a police investigation in March 2015.
The company was found to have repeatedly forged bank acceptance bills and other major transactions, and its financial statements included fraudulent information on assets, income, profit and other items.
French girl ties the knot with Chinese boy
Beijing Style: ready for bare legs
Century-old station sees railyway evolution
Enthusiasts perform Kung Fu at Wudang Mountain
Stunning photos of China's fighter jets in drill
Monk's mummified body to be made into a gold Buddha statue
Former Chinese solider of the French Foreign Legion seeks wife online
Asia's longest and highest suspension bridge to open to traffic
China's first interactive robot looks like a beauty
Top 20 hottest women in the world in 2014
Top 10 hardest languages to learn
10 Chinese female stars with most beautiful faces
China’s Top 10 Unique Bridges, Highways and Roads
Art not porn
Congestion fee needs careful deliberation
Beijing policemen probed for man’s death
Why does China get carte blanche for its insensitivityDay|Week