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| Fund Misappropriation Accusations Mar 17 Companies |
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The China Securities Regulatory Commission (CSRC) has begun investigating the fund misappropriation issues of 17 listed companies. The 17 companies have failed to recoup their total 9.2 billion yuan (about US$1.15 billion) of debt by their controlling shareholders before the deadline, which had been set by the end of 2006, a spokesman of the CSRC said here on Sunday. The companies include Sanjiu Medical & Pharmaceutical Co., China Textile Machinery Co. and Hebei Baoshuo Co.. Those found having misappropriated funds in these companies will be prosecuted to the full extent of the law, according to the spokesman. Thirty-six companies failed to meet the deadline, involving a total of 14.6 billion yuan of misappropriated funds. However, the other 19 companies have established a sound money recovery plan, escaping the investigation. The CSRC issued an ultimatum to listed companies in October 2005, requiring them to recover misappropriated funds by the end of 2006. Last year, 402 companies listed on the Shanghai and Shenzhen bourses recovered 33.57 billion yuan misappropriated by their controlling shareholders. The recovery campaign had been aimed at improving the quality of the country's 1,400 listed companies and safeguarding the interests of their shareholders. The misappropriation of large sums by controlling shareholders has become a major problem crippling China's burgeoning stock markets. (Xinhua News Agency January 8, 2007) |
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