China Punishes Two Brokerages For Fraudulent IPO Listing

The China Securities Regulatory Commission punished two brokerages for failing in their due diligence while launching Initial Public Offering in 2011 and 2012. The Chinese securities regulator plans to fine Minsheng Securities 2 million yuan ($326,024) for its failure to perform proper due diligence while handling Shanxi Tianneng Technology Co’s initial public offering in 2011. Besides the securities watchdog plans to confiscate 1 million yean fee the brokerage firm earned for handling the initial public offering mandate, according to a Bloomberg report. The securities watchdog will also give a warning to another brokerage firm, Nanjing Securities, for a similar offence…