Five years of fraud only 500,000 yuan South spinning illegal cost is too low?

This reporter Han Xun Shanghai reported 5 years of financial fraud, 500,000 yuan fine, South spinning shares (600250, shares bar) (600250. SH) The low cost of the violation is astonishing! Recently, the South textile shares issued a notice, the company on March 23, 2012 received the SFC issued the "investigation notice", and on May 15, 2014 received the SFC issued the "Administrative penalty decision book." The SFC identified the company 2006 fictitious profit 31.0915 million Yuan, 2007 fictitious profit 42.2333 million Yuan, 2008 fictitious profit 151.9983 million yuan, 2009 fictitious profit 60.5318 million yuan, 2010 fictitious profit 58.6412 million yuan. A state-owned enterprise, for five consecutive years fictitious profits amounted to 340 million yuan, except the south spinning shares of their own problems, the responsibility of independent directors? For the South textile stock fraud issued a "Standard No reservations" audit report of the Nanjing Lixin Yong-Hua accounting firm (now lixin Jiangsu Branch, hereinafter called Nanjing Lixin) and what responsibility? Fraud to avoid the withdrawal of the city in accordance with the South textile shares of the announcement, deduction of fictitious profits, the company 2006, 2007, 2008, 2009 and 2010 profit of 6.6865 million yuan,-14.3059 million yuan,-136.2047 million yuan,- 44.704 million yuan and 59.6901 million yuan. Obviously, if not fake, according to the listing rules, South spinning shares 5 consecutive years of loss, should be back to the market. For the punishment of the responsible person, the CSRC's decision was to give the South spinning shares a warning and to impose a fine of 500,000 yuan, to give warning to Tanxiaojong (the chairman of the company at the time of Nam spinning) and to impose a fine of 300,000 yuan, to give warning to ding (then Chief Financial Officer), Liu Shenning (then deputy General Manager), and Give warning to Yang Capital (then director, Deputy Manager), Han Yong (then director, Deputy Manager), Chawanlong (time director) and fined $50,000 respectively. At the same time, the CSRC gave Guo Sujiang (the time director), Wang CHUNFF (then director) warning and fined $30,000 respectively. 21st Century Economic Report reporter in the interview learned that many market participants believe that the South textile shares were punished too lightly, almost equal to no illegal costs. A Shanghai fund manager bluntly, if according to the real financial data, "South textile shares since 2006 even after three years, 2009 should be back, the result is that it also continued to" live "in the market, only to be punished by 500,000 yuan. If this is the cost of such a violation, everyone can fake it. "The chairman of a listed company in Jiangsu told the 21st century economic reporter that his company is manufacturing," in the context of human cost, raw material price, and export decline, in order to profit, the company not only reduce management costs, but also increase market sales, I am a chairman of the daily running business. If in accordance with the case of South spinning shares, we can completely fake, and then be punished by 500,000 yuan, two-tier market borrowed false profits to pull up the share price, and then reduce stocks. ”In his opinion, this kind of punishment strength, for them this conscientious do industry's person is unfair, "no fake and fake only 500,000 yuan Gap, too disappointing!" Shanghai Huarong law firm Xu Feng lawyer told the 21st century economic reporter, the Securities Act stipulates that the maximum penalty is 600,000 yuan fine, "the SFC's ability to punish is limited, 500,000 yuan punishment relative to the maximum penalty, is almost very high, and the rest, the SFC has no way." "In his view, the securities law and the current listed companies, compared to the violation is clearly lagging behind," the future does not rule out the possibility of amending the law, will certainly increase the cost of violating the rules, otherwise this low cost will only let more listed companies take risks. If the negligence of the South spinning shares violates the criminal law, the future will be held criminally responsible. "Follow-up or can still be responsible for the data show that the South textile shares in March 2001 after the listing, Tanxiaojong" at the helm "for nearly 10 years. July 2011, Tanxiaojong, Ding and Liu Shenning were surveyed by relevant departments. March 2012, South spinning shares were filed by the China Securities Regulatory Commission for investigation. In November 2012, the Shanghai Stock Exchange made a decision to make public condemnation of the South spinning shares. At the same time, SSE also identified the former Chairman and general manager of Tanxiaojong, former director and deputy general Manager and financial director Ding, former deputy general manager Liu Shenning Three malicious collusion, joint fraud, to the violation of the responsibility, the public condemnation of the public at the same time publicly found that the three people in three years is not suitable for the listed companies Director of the high office. (see this newspaper November 19, 2012 "*st") for the independent director of South spinning shares at the time, the CSRC also gave Xu Cangning, Yangzhong, Wang Kaitian and Chuibin warning and fined $30,000 respectively. The 21st century economic reporter noted that Wang Kaitian and Chuibin, who were among those punished, were still independent directors of South spinning shares. South Textile shares data show that Wang Kaitian August 2005 has been Nanjing Finance and Economics University Deputy President, is currently the Nanjing Municipal People's Congress, Chuibin is currently the director of social sciences at Southeast University, professor of economic management, Ph. D. supervisor. And the previous two alone, Xu Cangning is the Southeast University of Economics and Management, professor, Doctoral tutor, Yangzhong is Nanjing University party committee deputy secretary, Discipline Inspection Secretary. Xu Feng lawyer told the 21st century economic reporter, under the existing system, the listed companies are generally very difficult to play a regulatory role, "especially in the South spinning shares such a state-owned enterprises, the independent director basically has no right of speech." "From 2006 to 2010, in the five-year period of the counterfeiting of the South spinning stock, the subsidy was initially 36,000 yuan per year, and 2007 to 38,300 Yuan, 2008 was 40,000 yuan, and 2010 was 53,300 yuan." South Textile Shares 2013 annual report shows that the company's sole director of the annual allowance has reached 80,000 yuan. "Apart from the increase in allowances, I do not see the role of these independent directors?" "In the view of the fund managers, these are the" vases "which, apart from the annual" fishing off "of the huge subsidy," you can also point toDo they have any explanation for investors? "For the punishment of the sole director, Xu Feng Lawyers feel that it is" fair "," at present, the punishment for the sole director is a warning or a fine, and this warning is combined with fines, which means that these directors are too negligent in their duties, and the punishment is correspondingly increased. " In addition, the South Textile shares 2006 to 2010 profit "false" five years, its accounting institutions for Nanjing Lixin Yong-hua, executives for S.M. Wu Manufacturing. 21st Century Economic Report reporter noted that during the forgery, the board of Directors of the South spinning shares of the Audit Committee has repeatedly in the annual report that Nanjing Lixin Yong-hua Audit business quality, dedication, follow the practice standards, better completed the audit tasks. A total of 12 accounting firms were "deducted" due to alleged violations of the law in 2010, according to the "hundreds of information before the 2011 CPA firms" issued by the China Note Association. Among them, Nanjing Lixin Yonghua was deducted 10 points. "If the counterfeiters of the South spinning shares bring losses to investors, then investors have the right to pursue their civil compensation." "Xu Feng lawyer told the 21st century economic reporter, he is currently helping some of the South textile investors to organize materials," the future will help the loss of investors to defend the rights, to the South spinning shares and related responsible persons to seek civil compensation. May 19, South textile shares fell 4.26% in a day to 5.62 yuan. (Edit Chenhao min) (edit: Yu Xiaoming)