China Startups Tumble After Regulator Says Investors Misled
- Firms punished for not fully disclosing links to one customer
- Shares of Ningbo Ronbay, Zhejiang HangKe slide in Shanghai
This article is for subscribers only.
China’s securities regulator punished two high-flying startups for misleading shareholders, barring them access to public markets for new funding.
Shares of Ningbo Ronbay New Energy Technology Co. and Zhejiang HangKe Technology Inc. closed down at least 10% in Shanghai after the companies were told they wouldn’t be allowed to sell stocks or bonds publicly for a year. The punishment -- for not fully disclosing links to a customer who then failed to pay its bills -- is the first of its kind for a company trading on the city’s Star board.