The US Securities and Exchange Commission suspended trading in shares of China-Biotics (CHBT.PINK) on Friday citing a “lack of current and accurate information” on the company, which hasn’t filed a quarterly report since February, the Wall Street Journal reported. The Shanghai-based food supplement firm is the sixth Chinese company to be suspended by the SEC this year. China-Biotics gained its US listing through a reverse merger with an already-listed shell company, a method that avoids the more stringent regulatory scrutiny of an initial public offering. China-Biotics’ former auditor BDO dropped the client in June after alleging that the company had submitted a fake website to verify bank balances. China-Biotics is just one of the numerous frauds uncovered in the last year. This week, the SEC also asked audit firm Deloitte Touche Tohmatsu to appear in court after the auditor refused to release records on Hong Kong-based software firm Longtop (LFT.NYSE), a former client that was de-listed in May.
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