The government of China is reported to have started its investigation of Everbright Securities Co.'s advising of Tianfon's initial public offering. The China Securities Regulatory Commission performed the probe as part of its drive to crack down brokerages for listings who were found to have inadequate due diligence.
The securities regulator initiated the investigation in connection to Henan Tianfon Energy-Saving Panel Scient and Technology Co.'s attempt to go public, said the brokerage institution in a statement delivered at the Shanghai Stock Exchange.
Previously, Ping An Securities Co., Minsheng Securites Co., and Nanjing Securities Co., all received reprimands from the Chinese securities agency as parts of its anti-fraud campaign. The said agency have stopped initial public offering approvals in October amidst the country's stock index decline.
Almost 600 companies have submitted their documents to the CSRC for checking of their self audtis. Forty of the 600 submitted self-audits were randomly selected for checking. Tianfon was included in the list of 40, according to them.
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