Boyuan case could spark more delistings

Report suggests as many as 40 troublesome firms are bracing for disciplinary action by regulator

Analysts expect China's securities watchdog to delist more problematic companies this year, as it seeks to restore investor confidence through an intensified elimination of law-breaking listed firms.

The Shanghai Stock Exchange on Monday delisted Zhuhai Boyuan Investment Co Ltd, the first company to be ousted by the China Securities Regulatory Commission for violation of disclosure rules and fraudulent practices, including forging commercial bills and inflating asset and profit.