China Penalizes (Only) Two Brokerages in Crackdown on IPO Fraud
June 1, 2013 Leave a comment
China Penalizes Two Brokerages in Crackdown on IPO Fraud
China’s securities regulator punished two brokerages for violating the country’s securities rules and banned four bankers from the industry for life as it steps up a crackdown on fraud in initial public offerings.
The China Securities Regulatory Commission plans to fine Minsheng Securities Co. 2 million yuan ($326,024) for failed due diligence in Shanxi Tianneng Technology Co.’s bid to list shares in 2011 and confiscate the 1 million yuan fee it earned from the deal, the agency said on its website today. Nanjing Securities Co. will be given a warning for a similar offense committed when it advised Guangdong Xindadi Biotechnology Co. in 2012, the CSRC said. The agency said both IPOs were pulled after reports of fraud were published by unidentified media. Read more of this post


