Industrial Securities Faces Probe by CSRC after Clients Faked IPO Numbers
- The firm is being investigated by the Chinese regulator for a suspected failure to perform its statutory duties.
Industrial Securities Co., a Chinese firm engaged in brokerage, self-operation, investment banking and asset management businesses, has said that it is being investigated by the China Securities Regulatory Commission (CSRC) for a suspected failure to perform its statutory duties.
The regulator informed the firm of the probe on 12 June 2016, according to an Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term filing today. Industrial Securities, which is listed on the Shanghai Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, has confirmed that it will be cooperating with regulators and that its operations are continuing as normal.
An investigation into the case was launched after Dandong Xintai Electric Co. said that it had received a fine of 8.32 million yuan ($1.3 million) by the CSRC for fabricating financial information as well as in its application for an initial public offering. The firm’s false numbers were said to have spanned accounts receivable, bad-debt provisioning and cash from operating activities.
Industrial Securities was the underwriter for the IPO, which took place in 2014 and has set up a compensation fund to protect investors’ interests.
Dandong Xintai Electric’s shares have now been suspended and it looks almost certain that it will exit the market, becoming the first company 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.
Industrial Securities Co., a Chinese firm engaged in brokerage, self-operation, investment banking and asset management businesses, has said that it is being investigated by the China Securities Regulatory Commission (CSRC) for a suspected failure to perform its statutory duties.
The regulator informed the firm of the probe on 12 June 2016, according to an Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term filing today. Industrial Securities, which is listed on the Shanghai Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, has confirmed that it will be cooperating with regulators and that its operations are continuing as normal.
An investigation into the case was launched after Dandong Xintai Electric Co. said that it had received a fine of 8.32 million yuan ($1.3 million) by the CSRC for fabricating financial information as well as in its application for an initial public offering. The firm’s false numbers were said to have spanned accounts receivable, bad-debt provisioning and cash from operating activities.
Industrial Securities was the underwriter for the IPO, which took place in 2014 and has set up a compensation fund to protect investors’ interests.
Dandong Xintai Electric’s shares have now been suspended and it looks almost certain that it will exit the market, becoming the first company 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.