(Yicai Global) Nov. 1 -- In light of some media reports suggesting several members of the China Securities Regulatory Commission's (CSRC) sub-committee in charge of examining securities issues are under investigation in connection with the financially-troubled Leshi Internet Information & Technology Corp. (Beijing) Co. [SHE:300104] (LeTV), a source close to the company denied the reports. The source told the online media outlet The Paper that the investigation is not directly related to Leshi and that he has not heard of any relevant departments investigating Leshi or its executives about the matter.
Logically, if a company is being probed, the authorities will first look into its sponsors and auditors and then the issue examiners, he said. Given that none of Leshi employees has been questioned or investigated, media speculation that the investigation of CSRC issue examiners is linked to the cash-strapped company is unfounded, the source added.
Suspected financial fraud in LeTV's initial public offering prompted investigation of several CSRC IPO panel members at that time. These included Xie Zhongping, the first ChiNext IPO review and approval panel member and deputy chief accountant at Asia-Pacific (Group) Certified Public Accountants Co., as well as Sun Xiaobo, deputy general manager of a Beijing-based certified public accountants firm, Caijing reported yesterday.
LeTV conducted its IPO in 2010 and was listed on China's ChiNext board on Aug. 12 that year, raising CNY730 million (USD110.3 million).