A Chinese firm is set to be penalized after authorities found that the company had fabricated an overseas project in Pakistan to disingenuously pump up revenue and profits and had falsified documents in the process, China's Ministry of Foreign Affairs (MOFA) confirmed on Monday.
The China Securities Regulatory Commission (CSRC) will soon announce penalties for Jiangsu Yabaite Technology Co for the securities violations, Geng Shuang, a spokesman for the MOFA, told a briefing in Beijing.
The CSRC has conducted an investigation in coordination with relevant Pakistani authorities and has not found any economic ties or capital exchanges with any company or individual in Pakistan, according to Geng.
The CSRC did not submit letters supposedly from relevant Pakistani officials for evidence, the spokesman added.
Following the official confirmation of fabrication from the authorities, Jiangsu Yabaite's shares on the A-Share market tumbled as much as 3.58 percent in the morning trading session on Tuesday.
On May 12, the CSRC had already announced on its website that it was planning on issuing a 600,000 yuan (,785) fine to Jiangsu Yabaite for violating information disclosure regulations and barring relevant executives of the firm from the domestic markets for three to five years, or for life in some cases. .
Furthermore, the CSRC said in the statement that, between 2015 and September 2016, the company, based in Yancheng, East China's Jiangsu Province, had fabricated overseas projects and other trade deals to artificially add 580 million yuan in revenue and 260 million yuan in profit.
The CSRC hadn't yet announced the finalized penalty as of press time on Tuesday.