May 1, 2018 / 6:19 AM / a year ago

China securities regulator imposes fines for false accounting, stock manipulation: Xinhua

BEIJING (Reuters) - China’s top securities regulator has fined one firm for illegal disclosure of information, as well as some individuals for market manipulation in cases involving over 70 million yuan ($11.05 million), state news agency Xinhua reported on Tuesday.

FILE PHOTO: An advertising board (L) showing a Chinese stone lion is pictured near an entrance to the headquarters (R) of China Securities Regulatory Commission (CSRC), in Beijing, China, September 7, 2015. REUTERS/Jason Lee/File Photo

The fines are the latest from the China Security Regulatory Commission (CSRC) indicating increased stock market supervision. In mid-March, the regulator imposed a record 5.5 billion yuan fine in a case of stock manipulation.

In the latest cases, the CSRC fined Shenzhen-listed software and hardware maker Geeya Technology Co Ltd 600,000 yuan for forging contracts and accounting to inflate 2014 profit by over 80.49 million yuan. It also issued a formal warning and fined managers, including Chairman Zhou Yonghui.

Zhou apologised for the firm’s misbehaviour during an online news conference held shortly after receiving a CSRC penalty notice.

The CRSC also revealed three cases of stock-price manipulation in 2015.

Feng Zhihao made 18.02 million yuan in profit by manipulating the prices of 10 shares, including Venustech Group Inc, through multiple trades after false reporting at limit-up and limit-down points, the regulator said.

Meng Xianglong made 16.21 million yuan in profit by disrupting stock prices for Aviation Sanxin Co Ltd, the regulator said.

The CSRC confiscated the gains and fined Feng and Meng 36.04 million and 32.42 million yuan respectively.

Representatives of neither Feng nor Meng could be reached for comment.

The CSRC imposed a 1.8 million yuan fine on Wen Gaoyongquan, chairman of Hunan Zhongyi Media Co Ltd. It also fined another three people 1.8 million yuan for dispersing incorrect information aimed at raising stock prices.

Hunan Zhongyi Media could not be reached for comment.

The securities watchdog also made a penalty decision for a case of trading with undisclosed information but did not reveal details of the case.

($1 = 6.3325 Chinese yuan renminbi)

Reporting by Muyu Xu and Josephine Mason; Editing by Christopher Cushing

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