The Securities Regulatory Commission in China will fine two brokerages for helping perpetrate fraud IPOs get listed on the bourse. The measure was to boost Beijing's credibility in the world financial market. This will get Minsheng Securities and Nanjing Securities fined after they displayed lack of diligence to scrutinize the IPOs they could have launched in an initial public offer.
Minsheng Securities was ordered to pay $326,000. Nanjing Securities was held up after it has given Xindadi Biotechnology an initial launch for public offer last year. This was stated in the company's website. Tianneng and Xindadi were penalized after being proved of falsifying financial documents.
In May, Ping An Securities was also suspended after helping a fraudulent firm to get shares listed in 2011. The IPO trading market in China has been suspended as Beijing wants to have a clean and clear market to boost its credibility. China has suffered a lot of corporate scandals that has caused a bad image to the Chinese stock market trade worldwide.
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