Jahwa fined for hiding transactions

Shanghai Jahwa United was fined 300,000 yuan (US$48,190) by the China Securities Regulatory Commission for failing to disclose trades related with its affiliate company promptly to investors and regulators.

But the CRSC didn't specify when Jahwa, which was also given a warning, has to pay the fine, according to a stock exchange filing yesterday.

Shanghai Jahwa's former Chairman Ge Wenyao also received a warning and fined 150,000 yuan.

The CSRC is boosting efforts to rectify information disclosure and to better protect the interests of investors and shareholders.

During the investigation, which started last month and completed in early December, the CSRC Shanghai bureau found that Jahwa's failure to disclose information and withholding crucial information about the listed company violated the Securities Law.

It also imposed a fine ranging from 30,000 yuan to 150,000 yuan on each of the 17 senior officials at the listed company, including Ge and former General Manager Wang Zhuo, who were responsible for information disclosure.

Last year, Jahwa was ordered by the CSRC to submit via stock exchange filings its related dealings with an affiliate company.

Jahwa later admitted it failed to report transactions worth 2.42 billion yuan between the firm and its affiliate company Wujiang Hujiang Household Chemical Co.

The management committees of retired employees of Shanghai Jahwa and its parent, Shanghai Jahwa Group, both held stakes in Hujiang Chemical, which meant that these transactions should have been revealed as transactions with related parties.

The two committees were dissolved in May after the dealings were first exposed by 21st Century Business Herald this year.