China Kicks Two Stocks off STAR Market for IPO Fraud

(Bloomberg) ― China will kick two stocks off the STAR Market after authorities found fraud in their initial public offerings, the national securities regulator said, pledging “zero tolerance” for violations or crimes in capital markets.

Essence Information Technology Co. and Amethystum Storage Technology Co. will be delisted from the Shanghai Stock Exchange’s Nasdaq-like STAR board, the China Securities Regulatory Commission (CSRC) said Friday in a statement. Some executives found accountable for the fraud will be banned from the securities market, and regulators will refer suspects to police.