The SZSE recently made the decision of disciplinary sanction, publicly reprimanding St Jinhua (Stock Code: 000818), its controlling shareholder Jinhua Group, its directors including Chen Shijie, Meng Jianhua, Wang Tieshan, CFO Li Xiaoguang due to serious violation of regulations and rules, including rules breaking guarantee and capital occupancy. Additionally, the SZSE imposed special treatment on St Jinhua, effective as of December 2, 2009, in accordance with the Paragraph 3.1 of Article 13 of the “Stock Listing Rules”.
According to the SZSE person in charge of the case, it was found out through investigation that since 2007, St Jinhua controlling shareholder and other affiliated parties impropriated the company’s capital many times, and at the same time, the company also repeatedly provided external guarantee in violation of regulations, and there was the major violation of regulations and rules in information disclosure.
The SZSE Disciplinary Sanction Committee dismissed the application by the parties concerned for exemption from the liability.
The SZSE person in charge of the case especially points out that the basis of good faith, regulated operation, eliminating capital occupancy and rules-breaking guarantee and strict performance of information disclosure duty shall be the unshirkable responsibility for any listed company, its directors and supervisors as well as senior management.
The person hereby reminds again that all listed companies, their directors and supervisors and senior management shall learn a good lesson from the case, strictly comply with the relevant laws, regulations and rules, conscientiously accept and positively coordinate with regulations of the securities regulatory institutions in order to put an end to acts in violation of laws and regulations and jointly safeguard the securities market order.
