For the SFC, the “state secrecy” issue is becoming a recurring problem. The Standard reports that the case against E&Y is the SFC’s second action in a week involving mainland China firms trying to withhold information on the ground that it may be a state secret. Last week, the SFC suspended trading in shares of China High Precision. According to Chinese media reports, the suspension came after China High Precision stated that it could not provide all of the information requested by its auditor because it could constitute state secrets.
‘Enforcement 40’ for 2020
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedIn