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China’s SEC Cracks Down on Improper Disclosure of Information

On July 15, 2015, the China Securities Regulatory Commission (CSRC) announced that it was investigating 10 cases that involved improper disclosure of information. The effort was the fifth if the CSRC’s 2015 campaign to crack down on illegal activities in stock trading. 

The 10 cases focus on five types of behavior: obtaining approval for IPOs through the use of fictitious assets and profits; covering up major stock holders’ illegal acquisition of the listed companies through the fabrication of major stock transactions; forging bank documents to inflate assets and profits and whitewashing listed companies’ financial statements; making up the  achievements of listed or targeted companies during the merger and acquisition period; and failing to disclose information in a timely manner or selectively disclosing important information, leading to abnormal fluctuations in the stocks of listed companies. 
Source: Xinhua, July 15, 2015