Dandong Xintai delisting starts over IPO fraud

China's top securities watchdog on Friday initiated the compulsory process todelist an electric equipment manufacturer, for fabricating financial information in its application for an initial public offering.

Dandong Xintai Electric Co became the first listed firm in the Chinese mainland to be delisted from the exchange for IPO fraud since the securities regulator unveiled stricter delisting rules in 2014 in an effort to restore investors' confidence and eliminate errant companies.

China Securities Regulatory Commission spokesman Zhang Xiaojun told a news conference on Friday the regulator would continue its zero tolerance of financial fraud and the violation of information disclosure rules by public companies.