CSRC probes underwriters, halts some IPO applications

Three more securities brokers could be banned from underwriting new stock offers following a similar ban on Ping An Securities, China Business News (CBN) reported Tuesday citing a source with knowledge of the matter.

The China Securities Regulatory Commission (CSRC) has stopped processing IPO documents from Minsheng Securities, the CBN learned from a private equity professional who had invested in an unnamed IPO applicant underwritten by Minsheng.

Guangda Securities and Nanjing Securities are the other two banned underwriters and are suspected of being involved in producing fake IPO documents to help firms get listed, the CBN reported.

Shanxi-based Tanon Solar, Guangdong Xindadi Biotechnology, and Henan Tianfon Group are all under investigation for potential fraud on IPO documents.

Minsheng Securities is the underwriter of Tanon Solar, Nanjing Securities underwrites for Guangdong Xindadi, and Guangda Securities underwrites for Henan Tianfon, so all three are at risk of being penalized for negligence.