China’s securities regulator raises suspicion of financial fraud committed by chip developer Beijing Zuojiang Technology
- The China Securities Regulatory Commission found Zuojiang’s 2023 financial disclosures to be ‘seriously untrue’
- The regulator said its investigation, which was initiated on November 24, was still ongoing
The CSRC said its investigation, which was initiated on November 24, was still ongoing and that it aimed to uncover evidence of illegal activities as soon as possible.
Zuojiang said it had yet to receive the results of the CSRC’s investigation, and that it could not provide an estimate of its 2023 financial earnings to investors, according to the company’s filing on Wednesday to the Shenzhen Stock Exchange.
Shares of Zuojiang closed down 19.99 per cent to 33.94 yuan (US$4.77) on Thursday, following the stock’s resumption of trading on Wednesday. Zuojiang halted trading from January 24 after its shares rose more than 110 per cent in six consecutive trading days.
The Shenzhen Stock Exchange last April had issued a warning about delisting Zuojiang after the firm reported losses and revenue of under 100 million yuan for its 2022 financial results. The company’s shares, however, grew more than 800 per cent within 15 months from 2022 to 2023.
