Jiangsu Qionghua, one of the first group of companies listed on China's newly-established board for small- and medium-sized enterprises (SMEs) of the Shenzhen Stock Exchange, was berated on Sunday for dishonesty in the disclosure of financial information.
The high technology company, whose stock price rocketed on 25 June, the first day it started trading on the Shenzhen SME board, was publicly condemned by the Shenzhen Stock Exchange (SSE) for concealing the fact it entrusted a total of 25 million yuan (US$3 million) to two stock companies for management.
Such trusts can incur serious financial losses and thus risk misleading investors if not accurately disclosed.
