Others News
- 17 companies probed over misuse of funds
Date: 9-Jan-2007 Sources: (Shenzhen Daily)
REGULATORS are investigating 17 listed companies which have major shareholders that misused company funds and failed to return them before the end of last year, Xinhua reported yesterday, citing the China Securities Regulatory Commission (CSRC).
The report said the amount involved totals around 9.2 billion yuan (US$1.18 billion) and the listed companies concerned include Sanjiu Medical & Pharmaceutical Co., Gansu Languang Science & Technology Co., Shanghai Broadband Technology Co. and China Textile Machinery Co.
Legal measures are being taken against executives at nine of the companies, Xinhua said, without giving further details.
On Thursday, Xinhua cited the two main stock exchanges as saying 36 listed companies had yet to recover a total of 14.6 billion yuan in funds misused by their controlling shareholders.
Thursday's report also said the CSRC had warned that companies which failed to recover misappropriated funds by the end of 2006 would be banned from refinancing.
In another development, Shanghai and Shenzhen stock exchanges yesterday started limiting the daily price fluctuations of 40 publicly traded companies, in a move to spur them to complete a government program to convert State shares into tradable stocks.
Shenzhen Development Bank Co., China Southern Airlines Co. and 38 other companies, representing about 2 percent of the stock market capitalization, had their daily price movements cut to 5 percent starting yesterday, from the current 10 percent.
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