SEC moves to end sales of two China-based stocks
The U.S. Securities and Exchange Commission, as part of a broader probe of China-based firms listed on U.S. exchanges, moved to halt new share offerings in two companies after their independent auditors resigned.
SEC investigators claimed that China Intelligent Lighting and Electronics Inc. (CIL) and China Century Dragon Media Inc. failed to disclose that their independent auditors had withdrawn after questioning the accuracy of the companies’ financial statements, according to two separate orders released today. The SEC is seeking a so-called stop order to prevent the companies and shareholders from selling stock under the faulty statements, the agency said in a statement.
Full Story: SEC seeks halt to sales of 2 China-based stocks