CSRC in internet share sales warning

PUBLISHED : Monday, 27 May, 2013, 12:00am
UPDATED : Monday, 27 May, 2013, 5:06am

A crackdown on the unauthorised selling of shares online has been launched by the China Securities Regulatory Commission (CSRC), Xinhua reports.

Several companies are selling shares without authorisation through the popular mainland retail website Taobao, the CSRC has announced.

"As the first case of illegally selling shares to the public through the internet, CSRC advises investors to raise their guard against illegal securities activity on the internet and avoid them," it said.

Shares worth more than 180,000 yuan (HK$226,000) have been illegally sold in deals involving 153 people through Taobao's website, Xinhua reported.

The CSRC is also investigating eight mainland-listed companies for irregularities, inaccuracies and inadequacies in their disclosures, it has announced.

The eight companies under investigation include Xian Longi Silicon Materials, a Shanghai-listed firm that supplies silicon rods and wafers for solar energy cells. Longi failed to disclose major changes to its financial results while selling its shares, which is a breach of regulations, the CSRC said.

Among the other companies being investigated, the CRC alleges that Shenzhen Hirisun Technology, a Shenzhen-listed IT services provider, falsified its accounts receivable and part of its sales revenue from 2009 to 2011, while Tibet Tianlu, a Shanghai-listed highway construction company, did not give an accurate reason for its forecast of a loss for 2012 and failed to book construction costs into its 2011 accounts, and Chengde Dalu, a Shenzhen-listed highway construction company, did not report lawsuits and contracts in a timely manner, the CSRC alleged.