Ping An's compensation of Wanfu IPO investors a test case

China's stock market has long been compared to a casino, with cooking of the books not unheard of. Now, imagine you lose a fortune in the casino and someone volunteers to reimburse you your losses.

That's exactly what has happened to 13,426 investors who bought into Wanfu Biotechnology. Its IPO sponsor, Ping An Securities, offered them 300 million yuan (HK$380 million) after Wanfu admitted inflating its pre-IPO profit by 90 per cent.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1261124/ping-ans-compensation-wanfu-ipo-investors-test-case