HONG KONG (REUTERS) - China's regulators have fined Ping An Insurance's securities unit for helping a fraudulent Chinese company list its shares on the stock market, a move underlining Beijing's determination to clean up the market.
The China Securities Regulatory Commission (CSRC) slapped a 51.1 million yuan (S$10.4 million) fine on Ping An Securities for helping Wanfu Biotechnology list its shares on the stock market, parent firm Ping An Insurance Group Co of China said in a filing to the Shanghai stock exchange on Monday.
The CSRC will also confiscate Ping An Securities' income of 25.55 million yuan generated from the initial public offering (IPO) of Wanfu Biotechnology in 2011, Ping An Insurance said.
"The CSRC has ordered Ping An Securities to change its ways and a warning has been issued," parent firm Ping An said.
The CSRC said earlier this year it was revoking Ping An Securities' underwriting licence for three months.
Having listed in September 2011, Wanfu Biotechnolgy shares fell sharply after it became clear that the company had exaggerated its financial performance, leading to huge losses for thousands of investors.