Citic guoan made financial fraud for seven consecutive years. What kind of punishment are they likely to receive?

For seven years in a row, citic guoan made financial fraud, with an accumulated inflated operating income of 506 million yuan, an accumulated undercharged financial expenses of 507 million yuan, and an inflated total profit of10120,000 yuan. The nature of fraud was so bad that the company was severely punished.

Punishment result:

1. CITIC Guoan Information Industry Co., Ltd. ordered to make corrections, given a warning and fined 600,000 yuan;

2. Give warnings to, Sun and Li Hongcan respectively and impose a fine of 300,000 yuan;

3. Give a warning to Wu Yiqun and impose a fine of 654.38 million yuan;

4. Ye, Yan, Luo Ning and Yan Haoyu were given warnings and fined 50,000 yuan respectively.

First, what is the purpose of citic guoan's fraud?

The purpose of fraud is only to gain profits in the stock market. For enterprises, as long as they can go public, they can get financing, and at the same time they can solve the debt crisis. Issuing bonds, increasing income and issuing stocks are all ways for companies to gain benefits in the capital market.

Second, how to falsify citic guoan's financial statements.

Actually, citic guoan's fraud is not complicated. Their financial reports achieve the purpose of falsification by inflating income and underestimating financial expenses. In this way, ordinary investors can't tell the difference between true and false, because these financial reports are professional financial reports audited by professional finance.

Third, why didn't the organization find it fraudulent in this decade?

The financial reports of listed companies are audited by professional accounting companies. These accounting companies are very well-known enterprises. In general, no one will doubt the truth of their reports. At the same time, they showed citic guoan the standard unqualified financial statement, which is the highest financial standard among listed companies. Generally, producing such a report means that there is no financial risk, which is also the real reason why the organization has not found its fraud.

4. What if the stock plummets and the shareholders lose money?

Citic guoan was stoned for faking. According to the law, shareholders of fraudulent enterprises can claim compensation from listed companies. Moreover, citic guoan has not withdrawn from the market, and the success rate of shareholder claims is relatively high. This is the right of shareholders.

How do verbs (short for verb) view citic guoan's punishment?

It is a very bad thing for listed companies to falsify. With the deepening of capital market reform, the national laws and regulations on fraud of listed companies are constantly being revised. With the continuous advancement of the registration system, listed companies will pay a serious price for fraud. But judging from citic guoan's fraud, the maximum fine is only 600,000 yuan, which is obviously too light. I hope to improve the law as soon as possible and severely punish fraudulent listed companies.

China's capital market has developed for more than 30 years, but its system is not perfect. With the deepening of capital market reform, I believe that these drawbacks of China's capital market will be effectively changed.