China punishes two brokerages in IPO fraud crackdown

China’s securities watchdog has punished two brokerages for violating rules in helping fraudulent firms to list shares, underlining Beijing’s determination to bring credibility to a stock market some have likened to a casino.

The China Securities Regulatory Commission will fine Minsheng Securities 2 million yuan (HK$2.5 million) for failed due diligence in Shanxi Tianneng Technology’s attempt to launch an initial public offering in 2011, the regulator said in a statement on its website.

via Business feed http://www.scmp.com/business/banking-finance/article/1251319/china-punishes-two-brokerages-ipo-fraud-crackdown