China’s Second Largest CPA Accused of Faking Financials, Halting 43 IPOs

A sign for STAR Market, China's new Nasdaq-style tech board, is seen after the listing ceremony of the first batch of companies at Shanghai Stock Exchange (SSE) in Shanghai, China on July 22, 2019. Reuters

China Securities Regulatory Commission suspended 43 initial public offerings as China’s second-largest accounting firm is under investigation for falsifying financial data.

CSRC regulators in early June temporarily halted three of China’s top ten auditing firms—BDO China Shu Lun Pan Certified Public Accountants, Ruihua China Certified Public Accountants and China Dahua Certified Public Accountants—from handling mergers and acquisitions involving any of their publicly listed clients.