Errors of Aggression Catch up with Underwriter

(Beijing) – Ping An Securities Co. has been slapped with a fine by the securities regulator and will lose its stock underwriting license for three months because of its sloppy work in underwriting the initial public offering of a company that turned out to be a fraud.

This is not the first time the leading underwriter had to swallow a bitter pill for its overly aggressive approach to IPO underwriting in 2010 and 2011, when it beat all other brokerage firms in the country in underwriting revenue.