The China Securities Regulatory Commission (CSRC) has ordered an
investigation into the
999
Pharmaceutical Co, a major listed pharmaceutical firm in China,
for suspected false information disclosure and serious problems in
fund management.
A
CSRC spokesman said on Monday that the firm's problems emerged in a
routine inspection by the regulatory body in June.
CSRC investigators found that by May 31, major shareholders and
associated sides were appropriating 2.5 billion yuan (US$301.20
million) in funds belonging to the listed firm, which accounts for
96 percent of its net assets.
The investigators also found serious problems concerning the truth,
accuracy and completeness of the firm's information disclosure, and
the change of the usage of funds raised through stock issuance.
The CSRC has already issued a public criticism of chairman Zhao
Xinxian and 13 other directors and supervisors, and ordered the
firm to rectify its problems as required.
The CSRC will continue with its probe and will hand out sanctions
in accordance with the law, the spokesman said.
(Xinhua
News Agency 08/28/2001)