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Dandong Xintai Electric Co., Ltd., landed on the ChiNext Board of Shenzhen Stock Exchange(SZSE) on January, 2014, had been filed an investigation by China Securities Regulatory Committee(CSRC) on 14 July, 2015. On 8 July, 2016, the Company received from CSRC the letter of Decision on Administrative Penalty, and the letter of Decision on Prohibition of Market Access, according to which Xin Tai Electric and relevant persons will be penalized by CSRC for fraud share offering, and actions against information disclosure laws and regulations.
Related principal from SZSE indicated that as Xin Tai Electric’s fraud share offering and actions of illegitimate information disclosure had triggered the condition for the delisting of public company, SZSE would handle the works of Xin Tai Electric’s delisting properly in accordance with law and regulations. The specific works include: supervise and urge Xin Tai Electric to disclose information strictly in line with regulations provided in Rules of Listing on the ChiNext Board, strenghen the reminder of delisting risk, and decide the company’s listing suspension in accordance with laws and regulations at appropriate time; SZSE will protect the lawful rights and interest of investors, urge the sponsor to shoulder the intermediaries’ responsibility regarding compensating the eligible investors per the principle of compensation in advance. SZSE will receive the complaint and consultation of investors carefully. In order to handle the risk reminder, during the trading of, the abbreviation of the Xin Tai Electric will be changed to ‘Extra Xin Tai Electric’ during the trading period to remind the risk. In addition, SZSE will watch closely market consensus of the company, and enhance the real time supervision over the company during trading period.
As the above principal pointed out that fraud share offering had irreversible influences. According to relevant laws and regulations, Xin Tai Electric will not be able to resume the status of listing after the listing suspension, and will not be eligible for listing after the delisting. Xin Tai Electric will be the first company to be delisted on the ChiNext Board, and will be the first company the become delisted for fraudulence in the domestic securities market. In the light of philosophy of supervising and administrating strictly and comprehensively in compliance with law, SZSE will supervise and urge the related parties to perform their obligations, and protect the lawful rights and interest of the investors.
