UPDATE 1-Duoyuan subpoenaed by SEC on possible securities fraud

Fri Mar 18, 2011 10:26am EDT

* Says SEC probing if false documents were filed

* SEC seeks documents on financials, auditor dealings

March 18 (Reuters) - Chinese printing equipment maker Duoyuan Printing Inc said it is being investigated by U.S. financial regulators over a possible securities fraud and was served a subpoena relating to administrative issues.

The U.S. Securities and Exchange Commission (SEC) has initiated a formal probe to investigate if Duoyuan filed false documents, failed to maintain adequate financial records, and deceived its external auditor.

In a filing with the SEC, the company said it was served the subpoena on Nov. 10, 2010. It is not clear if this information was made public earlier.

The subpoena is for documents relating to Duoyuan's termination of Deloitte as its external auditor, its financials, and its relationship with a unit.

In September last year, the company's top officials resigned after its audit committee dismissed Deloitte as its auditor.

The Beijing-based company is also conducting its own internal investigation, it said in a filing dated March 18.

Duoyuan's shares were down 3 percent at $2.01 in early morning trade on Friday on the New York Stock Exchange. (Reporting by Sayantani Ghosh; Editing by Roshni Menon)