China Delists Two Firms on IPO Fraud, Vows ‘Zero Tolerance’
Pedestrians pass the Shanghai Stock Exchange building in Shanghai.
Photographer: Qilai Shen/Bloomberg
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China’s securities regulator said it will delist two firms after finding fraud in their initial public offerings, pledging “zero tolerance” for violations or crimes in its capital markets.
Essence Information Technology Co. and Amethystum Storage Technology Co. will be delisted from the Star board on Shanghai Stock Exchange, the China Securities Regulatory Commission said in a statement late Friday. Some executives deemed accountable for the IPO fraud will be banned from the securities market. The regulator will also refer suspects in this case to the police.