China Warns First Untruthful IPO Sponsor on New Sci-Tech Board
Du Qingqing
/SOURCE : yicai
China Warns First Untruthful IPO Sponsor on New Sci-Tech Board

(Yicai Global) May 22 -- China's main securities regulator has handed out a warning to China International Capital's sponsor representatives who beefed up Traffic Control Technology's initial public offering application for it to get listed on the upcoming science and technology innovation board, marking the first such notice regarding the new board. 

The China Securities Regulatory Commission required two representatives at CICC to admit their violations and rectify after the regulator found out that these professionals had altered business information in signalling solutions provider's prospectus, the CSRC's website said yesterday. The system for the new market is scheduled to be finished in the first half of this year. 

CICC has paid great attention to this incident and required its employees to carefully learn the relevant rules and regulations, the Beijing-based investment bank responded to Yicai Global's inquiry. 

The two advisors altered the Beijing-based firm's information disclosure data about operations, technologies and management in the prospectus that was filed on April 28. They proceeded by revamping some information without consulting the target firm to respond to the stock exchange's inquiries. 

The CSRC will strengthen its overhaul on sponsors that will take part in the sci-tech innovation board, and urge financial institutions to adhere to the highest standard in the process of due diligence to control risks, it said. 

Editor: Xu Wei, Emmi Laine

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Keywords: CRSC , Science and Technology Innovation Board , CICC