China Firm With Accounting Error Used Funds to Trade Shares
- Kangmei Pharmaceutical seeks special risk label for stock
- Company says it transfered 8.88b yuan to trade its shares
This article is for subscribers only.
One of China’s largest listed drug makers said related parties used the firm’s funds to trade its shares, a day after the securities regulator alleged financial data had been fabricated.
Kangmei Pharmaceutical Co. transferred 8.88 billion yuan ($1.3 billion) to connected entities to trade its own shares, it said in a filing that appeared on the Shanghai exchange on Saturday. The management of its capital and related-party transactions had "significant deficiencies," the firm said, and it sought a risk tag on its stock that will limit its daily moves within 5% instead of the normal 10%.