According to the news, the stock price of Kangmei Pharmaceutical Co., Ltd. rose sharply, with 150000 sealed orders on the trading board. Dormant in which the funds, with a unique word board, ridiculed all those who look forward to the stock delisting.
The pharmaceutical white horse stock, with a market value of 120 billion yuan, has previously relied on Fictions for its brilliant performance. According to the information previously released by the CSRC, Kangmei Pharmaceutical Co., Ltd. made nearly crazy financial fraud and violation in 2016-2018:
Firstly, it is suspected that the accumulated false increase of operating revenue is 29.128 billion yuan; secondly, the accumulated false increase of monetary capital is 88.6 billion yuan; thirdly, the annual report of 2018 is false increase of fixed assets and other 3.6 billion yuan; fourthly, the non operating capital is 11.619 billion yuan to the controlling shareholders and their related parties without authorization.
Such a shocking act of fraud and violation can last for at least three years, which shows at least three problems:
The first is that the supervision is just a formality, which has basically lost its deterrence to the listed companies such as Kangmei pharmaceutical industry that deliberately make fake; the second is that some intermediary agencies are seriously derelict of their duties, and the audit institutions have lost their role as gatekeepers; the third is that such companies even join the index stocks, which shows that the so-called research and research by all parties in the market is basically on paper.
It is estimated that any listed company with such a crazed fraud, placed in any capital market in the world, will be inexcusable. Especially in the U.S. market, the penalties for such financial fraud companies are very severe. How severe is the punishment? Look at the fate of Enron energy, a financial fraud company
(1) Enron declared bankruptcy directly;
(2) Enron was directly delisted from the Dow, stopped trading and was delisted;
(4) FESTO, Enrons financial planner, was sentenced to six years in prison and fined $23.8 million;
(5) Enron fully compensated investors for losses up to 7.14 billion US dollars;
(6) Andersen, Enrons accounting firm, was fined for a large sum of money and subsequently declared bankrupt;
(7) The investment banks of Enron, such as Citigroup, were sentenced to pay nearly $4.5 billion to the victims.
Compared with the strict supervision of the United States, the supervision of the domestic capital market is relatively soft. Among them, a very important reason is that the relevant laws and regulations seriously lag behind the development of the market, and the punishment for listed fraud is relatively light. For example, in the securities law of 1999, the top penalty for financial fraud of listed companies is only 600000 yuan, and the maximum penalty for directly responsible executives and other directly responsible personnel is only 300000 yuan.
Two decades ago, 600000 might have been a huge sum of money in China; twenty years later, 600000 was really a drizzle in front of financial counterfeiters. Its not only too light, but also a joke that a listed company like Kangmei pharmaceutical has a fine of 600000 yuan.
This provision was not amended until the securities law was reconsidered last year.
The low illegal cost is the main reason why A-share listed companies have been counterfeiting in recent years. In a sense, it is such obviously lighter punishment regulations that encourage the anger of financial fraudsters.
The newly revised Securities law imposes more severe penalties on financial fraud.
On March 1, 2020, the new securities law came into effect, and the maximum penalty for financial fraud increased from 600000 yuan to 10 million yuan, while strengthening the protection of investors. Even so, in the face of the reality of high incidence of financial fraud in domestic listed companies, such punishment, Im afraid, is still insufficient. It is necessary to regulate the chaos market. Industry insiders believe that only further increase the illegal cost, severe punishment for large shareholders cash arbitrage during the period of fraud, or even direct confiscation of cash arbitrage income; compulsory delisting for listed companies daring to make fraud; severe punishment for intermediary agencies acting for the tiger, and eviction of those with major responsibilities Only in this way can we really eradicate the soil of financial fraud of listed companies from the source, and return a healthy cycle of normal ecology of the capital market. The chairman apologized: its not a concept game. Lu Zhengyao said its true late at night. In the morning, there are more orders in Ruixing store. Lu Zhengyao said late at night: its not a concept game to deceive investors. Source: Company Research Office Author: Tian responsible editor: Wang Xiaowu_ NF
On March 1, 2020, the new securities law came into effect, and the maximum penalty for financial fraud increased from 600000 yuan to 10 million yuan, while strengthening the protection of investors. Even so, in the face of the reality of high incidence of financial fraud in domestic listed companies, such punishment, Im afraid, is still insufficient.