CSRC: Financial fraud is a "cancer" that erodes the foundation of the market and has always been a key target for CSRC crackdown.

According to the announcement by the China Securities Regulatory Commission, financial fraud is a "cancer" eroding the foundation of the market and has always been a key target of the commission's crackdown. In 2024, the commission discovered clues of financial fraud through diversified channels such as annual report reviews, on-site inspections, public opinion monitoring, complaints, whistleblowing, and big data modeling analysis, and investigated and handled 128 related cases, focusing on cracking down on illegal activities such as fictitious business, abuse of accounting policies, and collusion with third parties to commit fraud. Among them, Pengbo Doctor was fined 34 million yuan for manipulating asset impairment provisions to inflate profits and assets; investigations were initiated into two listed companies involved in financial fraud collusion in the Zijin Storage case to decisively break the chain of interest related to financial fraud.