Mainland regulators have withdrawn listing approval for Jilin Tonghai Hi-tech Shareholding two years after fraud allegations halted its debut on the Shenzhen exchange. The China Securities Regulatory Commission (CSRC) said Tonghai falsified profits in listing documents, and ordered it to return publicly raised funds. An announcement carried by major mainland financial newspapers on Saturday said: 'The CSRC has, according to the law, moved the case to law enforcement agencies for criminal investigations.' The criminal probes into Tonghai's major management personnel are likely to renew controversies surrounding businessman Wong Shi-ling, chairman of the struggling Hong Kong-listed pair Leading Spirit High-Tech and China DigiContent. In 1997 he lost millions of dollars on red-chip speculation, contributing to the collapse of CA Pacific, which lent heavily to him. Hong Kong regulators have also investigated his firms for share manipulation. Tonghai was set up in August 1998 as a manufacturer of thin film transistor-liquid crystal display panels. Prior to its initial public offering, it was 50.81 per cent held by state-owned Jilin Electronics Group. Last year, Guangdong's 21st Century Business Herald reported another founding shareholder, Jiangmen Conrowa Group, could trace its roots to Mr Wong and was partly controlled by his brother. The firm pledged 100 per cent of two television-makers under its control and a 90 per cent stake in a distribution subsidiary for 48.81 per cent of Tonghai. Tonghai raised 1.68 billion yuan (about HK$1.57 billion) from the sale of 100 million shares, or 22.2 per cent of its enlarged share capital, through a yuan-denominated A-share float in Shenzhen. But its July 10, 2000 listing debut was abruptly halted after informants tipped off regulators of fraud at the firm, mainland press reported. The CSRC findings said Jiangmen Conrowa Television, one of the TV makers, and the distribution firm had falsified main operating profits of more than 500 million yuan, accounting for more than 73 per cent of the two firms' declared profits in 1998 and 1999. The duo also forged commercial bills worth 1.6 billion yuan and are suspected of evading more than 200 million yuan in taxes. Tonghai's listing prospectus said television production contributed the bulk of its profits. The firm ignored a CSRC order to place all publicly raised funds into bank accounts pending the probe's conclusion. By the middle of last year, when regulators secured a court order to freeze Tonghai's publicly raised funds, only 210 million yuan was left, Beijing's China Economic Times reported in July. The probes were an embarrassment for Jilin, at a time when stock listings were a privilege reserved mostly for state-controlled companies and carefully apportioned among provinces. On Saturday, the province said it had set up a task force to oversee the return of funds to Tonghai investors or the conversion of their holdings into shares in the upcoming initial public offering of Jilin Power.