As of Sept. 10, wind data show more than 60 A-share listed companies have been
placed under formal investigation YTD (excludes delisted firms and duplicate
subjects). Regulators have stepped up oversight since September;
information-disclosure violations account for the bulk of probes. Liu Lei, head
of Beijing Zhijin law firm, said the investigations reflect covert fraud
techniques, widespread weak internal controls and compliance, and institutional
gaps such as unclear standards for directors’ and senior managers’ duty of
diligence.
