China strengthens crackdown on financial fraud of listed firms

BEIJING -- Chinese securities regulator has launched investigations into 22 listed companies for financial fraud since last year as authorities moved to tackle misconducts and improve corporate governance.

The China Securities Regulatory Commission (CSRC) said it has handed out administrative penalties on 18 cases and transfer six suspected criminal cases to public security authorities in the same period.

The fraud cases involved large amounts of money and have been done systematically with a high level of concealment and complexity, according to the CSRC.

The CSRC also found misconducts such as violations in information disclosure rules, illegal use of listed companies' funds by major shareholders, and failures of due diligence by intermediary agencies.

The CSRC said it would continue to firmly crackdown on financial fraud and deception of listed firms to protect the rights of investors and create a better market environment.