Lessons from China Auto

Keeping tabs: The Securities Commission building in Kuala Lumpur. It has taken steps to reprimand the relevant parties for the wrongdoing involving CAP.

THE Securities Commission (SC), in a statement last week, reprimanded China Automobile Parts Holdings Ltd (CAP), its current and former directors, and chief financial officers for various breaches of the securities laws.

According to the SC, pursuant to the company’s initial public offering (IPO), CAP had submitted to the SC and issued a prospectus dated Jan 11, 2013, that contained financial statements of its wholly-owned subsidiary that were false or misleading, due to overstatement of the subsidiary’s bank balances.