A number of legal professionals believe that Ruixings fraud may trigger the investigation of the CSRC, the CSRC may open a criminal investigation against the company and relevant responsible personnel together with the Ministry of justice, and the collective action and the CSRCs fine may lead to the companys bankruptcy. Still have lawyer rough calculate, once face class action, lucky will face total about 11.2 billion dollar compensation.
Dong Dengxin, director of the financial and Securities Research Institute of Wuhan University of science and technology, agreed with the statement that Ruixings fraud may trigger the investigation of the CSRC on June 6 in an interview with the global times. He believes that if the investigation proves that Ruixing coffee counterfeiting has reached a serious level, the executives involved in the signing of documents will face corresponding punishment, the punishment for individuals can be up to $5 million, and if criminal proceedings are involved, in the most serious cases, they may be sentenced to 20 to 30 years imprisonment. Dong Dengxin said that the degree of marketization of the US delisting system is very high, and it is not necessary to go through the CSRC or NASDAQ. As long as its share price drops below $1 per share and lasts for 30 trading days, it will be unconditionally delisted. According to Dong Dengxin, in 2010, zhonggai shares were short in batches by American institutions, and the reputation of zhonggai shares was ruined at that time. Ruixings fraud may hit other Chinese stocks listed in the US even harder.
Read more about NASDAQ: at 7 p.m. on Wednesday, Ruixing coffee trade resumed. Lu Zhengyao said its really not cheating. Ruixings store orders have increased, and Ruixing was asked to delist! Lu Zhengyao: deeply disappointed and regretful_ NT2541