Some people even said, "The case that should have been handled seven years ago has finally been understood."
The CSRC explicitly requires that enterprises should be prevented from "listing with illness", and the job of the audit committee is to conduct a comprehensive inspection of companies planning to go public to prevent problem companies from entering the capital market.
However, it is impossible for the IEC to "do its duty" every time.
Back to 20 10, the listing information submitted by letv to the audit Committee was approved in June of that year and landed on the growth enterprise market in August. It is the first share in China video industry, and its listing price exceeds the issue price by 60%, which is close to that of 47 yuan.
If LeTV's IPO is faked and accused of fraudulent issuance, Jia Yueting will probably lose all his money and his freedom. In other words, if it is serious enough, he will be investigated for criminal responsibility, and it is not far from going back to prison.
A lawyer of Beijing Dacheng Law Firm, who did not want to be named, told China News Service that this was a through train. If the later investigation finds that LeTV is listed for fraud, and according to the investigation of the CSRC, once it is found that there are major violations of laws and regulations, it is very likely to be delisted.
"If the situation of LeTV is similar to that of Xintai Electric, investors can consider taking follow-up claims or actively waiting for compensation schemes, such as the advance payment provided by Industrial Securities in the Xintai Electric case." The lawyer said.
Last year, China Growth Enterprise Market witnessed that Xintai Electric, the first stock that was forced to withdraw from the market because of fraudulent issuance, was fined "No Re-listing".
How to compensate for the loss? At that time, the CSRC indicated that it would freeze or restrict the issuer's shareholding reduction; Industrial Securities, a listed sponsor of Xintai Electric, invested 550 million yuan to set up a special fund for advance payment; Chairman Xintai Electric said that he would consider going through bankruptcy proceedings.
Then, if Xintai Electric is behind LeTV, should Jia Yueting think about how to go through bankruptcy procedures now, and should Ping An Securities, the sponsor of LeTV's listing, start preparing money?
The above-mentioned lawyer said that according to Article 6 of the Provisions of the Supreme People's Court on Trial of Civil Compensation Cases Caused by False Statements in the Securities Market, once delisting, investors can claim compensation from LeTV and other entities through civil claims. However, due to the large circulation of LeTV and the large share price gap, the claim amount may set a record.
What's more, if a state functionary is found to have taken bribes, it will be a criminal case.
Article 393 of the Criminal Law of People's Republic of China (PRC) stipulates that: if a unit pays bribes to seek illegitimate interests, or violates state regulations and gives kickbacks or handling fees to state staff, if the circumstances are serious, the unit shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention.
When LeTV went public, the legal representative was Jia Yueting, and the person in charge was of course him. As for how serious the plot is, no one knows now. Investigating LeTV's IPO fraud can be regarded as "unlucky" and may become an important opportunity for China's financial regulatory reform.
Not broken, not standing. The regulatory authorities should take this incident as an opportunity to re-examine the details of China's audit system and the specific composition of the audit Committee. If the people involved can be severely punished, it will also play an exemplary role for the new IEC, thus greatly reducing the occurrence of similar cases.
"If LeTV's IPO fraud is true, it is really a bad thing." A researcher at Chongyang Financial Research Institute of Renmin University of China said that fraud deceived investors and caused huge losses to investors. Its share price once exceeded 100 yuan at the highest, and now only a dozen of them are suspended. If it resumes trading, it will definitely continue to fall.
According to the report of Letv in the first three quarters of 20 17, the company realized operating income of 6.095 billion yuan, down 63.67% year-on-year, and realized net profit loss attributable to shareholders of listed companies of16.52 million yuan, down 435.02% year-on-year, and basic earnings per share of -0.4 144 yuan.
The so-called IPO fraud, although there is no clear statement, has been manifested at the market level.