China delists company over IPO fraud for first time

China will for the first time expel a company from its stock market for fraud in initial public offering (IPO) as authorities move to toughen regulation.

Procedures will be launched to delist Dandong Xintai Electric Co., Ltd., a Liaoning-based electric equipment maker, as the company was convicted of fabricating financial data in its IPO application, the China Securities Regulatory Commission announced Friday.

It was the severest penalty ever against IPO fraud in China's stock market.

(APD)