Ping An's securities unit fined by China regulators
Oct 14 (Reuters) - China's regulators have fined Ping An Insurance's securities unit for helping a fraudulent Chinese company to list its shares on the stock market, a move underlining Beijing's determination to clean up the market.
The China Securities Regulatory Commission (CSRC) slapped a 51.10 million yuan ($8.4 million) fine on Ping An Securities for helping Wanfu Biotechnology to list, parent Ping An Insurance Group Co of China Ltd said in a filing to the Shanghai stock exchange on Monday.
The CSRC will also confiscate Ping An Securities' income of 25.55 million yuan generated from the initial public offering (IPO) of Wanfu Biotechnology in 2011, Ping An Insurance said.
"The CSRC has ordered Ping An Securities to change its ways and a warning has been issued," parent Ping An said.
The CSRC had said earlier this year it was revoking Ping An Securities' underwriting licence for three months.
Having listed in September 2011, Wanfu Biotechnolgy shares fell sharply after it became clear that the company had exaggerated its financial performance, leading to huge losses for thousands of investors. (Reporting by Meg Shen in Hong Kong and Chyen Yee Lee in Singapore; Editing by David Holmes)
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