May 22, 2019 / 6:17 AM / 6 months ago

China regulator reprimands CICC bankers on IPO document violations

SHANGHAI/SINGAPORE, May 22 (Reuters) - China’s securities regulator said it has reprimanded two China International Capital Corporation Ltd bankers for improperly altering documents for a company they were advising for a listing on China’s new technology board.

The China Securities Regulatory Commission (CSRC) said in a statement on Tuesday that CICC bankers Wan Jiuqing and Mo Peng, who were advising Beijing-based urban transit systems operator Traffic Control Technology Co Ltd, altered the company’s initial public offering prospectus and other documents.

The CSRC said it had issued warning notices - the first regulatory punishment on China’s new tech board since it was announced in November.

The move comes on the heels of high-profile disclosure irregularities at listed Chinese firms that have highlighted weak corporate governance and sparked calls for stricter regulatory oversight.

CICC did not respond to an emailed request for comment and calls to its investor relations department went unanswered. Wan and Mo could not be immediately reached for comment.

The Shanghai Stock Exchange said in a separate notice that the bankers made changes to company operation data, business and technology information, and management analysis in the firm’s updated prospectus submitted to the exchange on April 28.

The exchange said Wan and Mo had not highlighted the changes to the exchange, nor did they report the changes to CICC’s internal control department for review and verification.

The Shanghai Stock Exchange said CICC, Wan and Mo had subsequently “recognised their errors” and corrected them. It said the violations indicated “weak links” in CICC’s management and internal controls, and issued the company with a written warning. ($1 = 6.9089 Chinese yuan) (Reporting by Andrew Galbraith in SHANGHAI and Shu Zhang in SINGAPORE; Editing by Anshuman Daga)

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