Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Live is Caixin Global's real-time news portal, featuring 24-hour breaking news, short-form analysis, and roundups from business and social media in China.

TRENDING
Chinese DNA Sequencing Firm BGI Faces Legal Battle with Illumina
Xiaomi Fires Vice President for ‘Obscene’ Behavior
Update: Chinese EV Startup Digs Into Real Estate
LATEST
China Doesn’t Engage in ‘State Monopoly Capitalism’: Banking Chief
Huawei Seeks $1 Billion in First Big Funding Test After U.S. Ban
Chinese Chipmaker SMIC to Delist From NYSE, Focus on Hong Kong
Just Add Water, Physics-Defying Car Company Claims
Hong Kong Banking Tycoon Passes Baton to Two Sons
Fears Grow as Fall Armyworm Continues Invasion of Chinese Farms
Rural Policy Bank Sells Bond to Retail Investors in Hong Kong
Baidu Continues Shaking Up Its Management Board
Xiaomi Fires Vice President for ‘Obscene’ Behavior
Update: Chinese EV Startup Digs Into Real Estate
Chinese DNA Sequencing Firm BGI Faces Legal Battle with Illumina
U.S. Companies and Consumers Pay for China Tariff Costs, IMF Says
Weibo Shares Slump After Q1 Revenue Growth Slows
Anxin Trust Questioned for Plunging Profits and Accounting Errors
Meituan Sees Strong Revenue Growth, Despite Drag From Mobike
DHL, Panasonic Deny Severing Huawei Ties
China Renewables Industry Comes of Age With Ambitious Subsidy-Free Projects
China Readies 600 Kph Maglev Prototype
Mercedes-Benz Makes it Easier to Trade in Defective New Cars in Wake of PR Nightmare
Shanghai Man Sentenced to Death for Child Murder
U.S. College Admissions Scandal Hurts Shanghai-Listed Pharma Company

By Zhao Runhua / May 13, 2019 05:43 PM / Business & Tech

The campus of Stanford, where Buchang controller Zhao Tao reportedly paid $6.5 million to get his daughter accepted. Photo: VCG

The campus of Stanford, where Buchang controller Zhao Tao reportedly paid $6.5 million to get his daughter accepted. Photo: VCG

The elite college admissions scandal in the U.S. is having effects beyond the country’s borders.

Media reports on Shandong Buchang Pharmaceutical swirled after major Chinese outlets reported that the company’s controller, Zhao Tao, allegedly paid $6.5 million to get his daughter into Stanford University.

Now the Shanghai Stock Exchange is closely watching Buchang’s moves. On Monday, the Exchange issued a notice asking the company to explain its high sales expenses. A 2018 fiscal report shows that sales costs accounted for 59% of the company’s total revenues – higher than the average level in the industry. The report showed most of these costs were for “general marketing, academic marketing and consulting” purposes, but rumors swirling online said they could include bribes Buchang paid to researchers and doctors to encourage sales of its products – a common, though illegal, tactic in the industry.

The Exchange also urged Buchang to look into quality problems initially reported by Chinese media. Over the past week, reports, some several years old, that certain Buchang products could cause kidney failure and damage to the nervous system have resurfaced.

Buchang’s Shanghai-listed stock fell 9.76% as of Monday’s market close.

Related: Chinese Tycoon Caught Up in Elite College Admission Scandal

 

Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.