Honorable Hercynian Limited Was Banned In Canada.

As the global capital market is sluggish and overseas listing of domestic enterprises has been repeatedly "shorted", the industry has also heard news that the Ontario Securities Regulatory Commission (OSC) issued a ban on two Chinese companies.

The company, China's honorable Hercynian Co., Ltd., as well as the executive officer Cai Yanda and President Cai Fengyi, are prohibited from conducting securities trading and investment activities in Ontario.

Spring and its owners are permanently punished.

"A year ago, it was investigated by OSC."

According to Mr. Chen, an industry insider who has long been concerned about the overseas listing of enterprises in Quanzhou, last year, the Chinese concept stocks were exposed to a round of "short selling" in the US stock market, and the Chinese concept stocks in Canada were also affected. Among them, the honorable footwear industry in Shishi was investigated by OSC in Canada, because the company was suspected of financial fraud.

It is understood that the honorable footwear industry went to the Canadian stock exchange in 2009.

After being "short" last year,

Share prices have fallen by nearly 90%.

Since August 23, 2011, the honorable footwear industry announced that its audit body Ernst&Young had suspended its audit of the company, the company's stock has been suspended.

Recently, OSC forbids honorable Haixi Company Limited and its executive officer and chairman to carry out securities trading and investment activities in Ontario province. That is to say, in Ontario, Canada, permanently stop buying and selling other valuable Haixi securities, while halting the sale of securities by the honourable Hercynian company. In addition, the company executives and chairmen are prohibited as directors or senior executives of any listed companies. They are prohibited from conducting securities pactions and acting as investment fund managers or registered investors.

Coincidentally, before the honorable footwear industry, OSC also decided to prohibit 6 Chinese executives from another Chinese enterprise, trading securities.

Since last June, the company was accused of exaggerating assets and forgery.

Trading, fraud funds, and so on, the two trading day, the stock volume fell 71%.

Overseas information disclosure is not acclimatized.

Due to the low threshold of overseas listing and the low demand for performance gains, the enthusiasm of overseas listing of domestic enterprises has not diminished in recent years.

However, the "aura" of overseas listing did not last too long. In 2011, China's concept stocks were exposed to Waterloo, and domestic enterprises listed in the US also encountered class action lawsuits.

According to statistics, in the first half of last year, there were more than 20 class action suits against Chinese Listed Companies in the United States. The number of cases was more than the sum of the previous year.

"Overseas listed companies are basically financial problems."

An industry insider analyzed whether in the US or Canada, the problems faced by China's concept stocks were inseparable from finance, for example, the income mentioned in the financial statements was hard to come to specific confirmation. The report submitted by the company to the regulatory authorities was not consistent with the tax authorities submitted to China, and the related pactions were not properly disclosed.

"Overseas listed companies should avoid the problem of ignoring the information disclosure."

This person reminded Chinese companies that have already prepared or listed overseas, regulating the financial management of enterprises is not a short-term behavior of IPO, but a system that needs long-term adherence.

"Chinese companies need to attach importance to and trust their auditors. Some Chinese companies regard auditors as obstacles to the company and do not see them as partners who help companies standardize their finances."

For those who have been trapped in it, this person suggests that in the United States and Canada, the short selling mechanism is part of the market itself. "Overseas listed companies need to have a sound mechanism to prevent human manipulation, and if the short selling mechanism can be applied rationally, the market will also play a catalytic role."