The China Securities Regulatory Commission issued a prior notice of administrative penalties against listed company Changjiang Pharmaceutical Holding Co., Ltd. (*ST Changyao) for suspected false records in periodic reports and other financial data, finding that the company inflated revenue and profits for three consecutive years in breach of securities laws and regulations. The case is described as potentially triggering the conditions for mandatory delisting due to major violations, with the Shenzhen Stock Exchange to start delisting procedures in accordance with the law. Proposed sanctions include a RMB 10 million fine on the listed company and RMB 31 million in aggregate fines on 14 responsible individuals, alongside a lifetime securities market ban for the company’s former general manager, Luo Ming. The CSRC is also conducting a parallel review of the conduct of relevant intermediary institutions and stated it will punish any illegal or irregular practices identified. Where potential criminal leads are involved, the CSRC said it will transfer cases to public security authorities in line with the “transfer all that should be transferred” principle and the applicable provisions of the Criminal Law and related filing and prosecution standards.
China Securities Regulatory Commission 2025-12-26
China Securities Regulatory Commission proposes RMB 10 million fine and lifetime market ban for *ST Changyao over three-year false financial reporting
The China Securities Regulatory Commission (CSRC) issued penalties against Changjiang Pharmaceutical Holding Co., Ltd. for inflating revenue and profits, potentially leading to mandatory delisting by the Shenzhen Stock Exchange. Proposed sanctions include a RMB 10 million fine on the company, RMB 31 million in fines on 14 individuals, and a lifetime market ban for the former general manager. The CSRC is also reviewing intermediary conduct and will transfer criminal cases to public security authorities as necessary.