SEC Files Orders Halt in Sales of Two China-Based Stocks
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The U.S. Securities and Exchange Commission, as part of a broader probe of China-based firms listed on U.S. exchanges, moved to halt new share offerings in two companies after their independent auditors resigned.
SEC investigators claimed that China Intelligent Lighting and Electronics Inc. and China Century Dragon Media Inc. failed to disclose that their independent auditors had quit after questioning the accuracy of financial statements, according to separate orders released today. The SEC is seeking a so-called stop order to keep the firms and shareholders from selling stock under the faulty statements, the agency said in a statement.