The China Securities Regulatory Commission (CSRC) has taken legal action against shareholders in 17 listed companies after they failed to return US$1.2 billion in misappropriated funds, the South China Morning Post reported. Following initial warnings more than a year ago, the CSRC has passed the cases to public security officials. Individuals from nine of the companies have been arrested. At least one, Sichuan Top Software Investment's biggest shareholder Song Ruhua, is thought to have fled to the US to avoid prosecution. The 17 companies include Sanjiu Medical Pharmaceutical, Shanghai Broadband Technology, China Textile Machinery and Guangdong Kelon Electrical Holdings. By the end of December, US$4.3 billion in misappropriated funds had been returned to 380 listed companies. A further US$691.2 million is on the way to 19 other companies.
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