Prominent Chinese law firms Dacheng Law Offices and JunZeJun Law Offices have respectively been fined $164,000 and $197,000 by the Chinese government for performing inadequate due diligence on initial public offerings, while another, Jingtian & Gongcheng, has had its listings applications suspended pending an investigation of similar activity.
The China Securities Regulatory Commission imposed its fine on Dacheng earlier this month over its role advising Guangdong Xindadi Biotechnology Co. Ltd on its proposed listing in Shenzhen. Last year, the IPO application for the Guangdong-based tea oil maker was preliminarily approved by the CSRC but subsequently terminated after several Chinese media outlets reported discrepancies in the financial statements included in its prospectus.
