Chang Depeng pointed out that, after careful investigation and trial, the CSRC found that during the period from 20 15 to 20 16, Yabat falsely increased operating income and profits by fictitious international trade and domestic trade through the bus project in Multan, Punjab, Pakistan. Among them, the inflated profit of 20 15 accounts for 73% of the total profit disclosed in the current period, and the inflated profit in the first three quarters of 20 16 accounts for about 20% of the total profit disclosed in the current period. Abbott's 20 15 annual report, 20 16 semi-annual report and third quarterly report disclosed the above false financial data, which constituted illegal information disclosure.
Chang Depeng said that the illegal case of Yabaite's information disclosure was a cross-border financial fraud case of a listed company investigated and dealt with by the CSRC. Since the illegal facts of this case involved overseas projects, the CSRC promptly initiated cross-border law enforcement cooperation procedures and made requests for law enforcement assistance to overseas regulatory agencies such as Pakistan, Hong Kong and the United States. The evidence provided by overseas regulators to the CSRC and the evidence held by the China Securities Regulatory Commission form a complete chain of evidence. The CSRC verified the illegal behavior of Yabate Company, and the case made a major breakthrough. At present, the CSRC has signed memorandums of regulatory cooperation with regulatory agencies in more than 60 countries and regions, constantly strengthening cross-border regulatory cooperation and information exchange in the securities and futures fields, and constantly improving the law enforcement cooperation mechanism. The Yabate case reflects the new trend of cross-border financial fraud of listed companies. The successful detection of this case shows that under the framework of cross-border law enforcement cooperation, any illegal act can not escape legal sanctions and will be severely punished by law.
Chang Depeng revealed that at the request of the parties, a hearing was held in this case after the administrative punishment was informed in advance. The CSRC conducted cross-examination of relevant evidence in accordance with the law, fully listened to the statements and defenses of the parties, and reviewed relevant opinions. Based on the factual evidence of the parties' fictitious participation in Multan Project ascertained by China Securities Regulatory Commission, China Securities Regulatory Commission rejected the relevant arguments put forward by the parties and decided not to adopt the relevant evidence submitted by the parties.
Chang Depeng said that Yabat's above-mentioned illegal acts involved a huge amount of money and the circumstances were serious. According to the factual evidence and relevant laws and regulations, the CSRC decided to impose a fine of 600,000 yuan on Yabaite and a fine of 300,000 yuan on Wing-kuen Luk, the person in charge who is directly responsible, and take the measures of lifelong market ban, and impose administrative penalties on other responsible persons or take the measures of market ban. In this case, the intermediary involved in the case is suspected of failing to perform due diligence and other illegal acts, and the CSRC will strictly investigate it to the end and will never tolerate it; The case has been suspected of constituting a criminal offence, and the CSRC will transfer it to judicial organs for further investigation of criminal responsibility.
There are still loopholes in the law.