Ruihua Certified Public Accountants, one of China’s largest accounting firms is being investigated after a listed company it was auditing has been found to have inflated its profits by Rmb 12billion (US $1.75 billion) over the last 4 years. In May 2019, Kangmei Pharmaceutical admitted to over-stating its profit by more than US$4 billion and is also currently being investigated by the China Securities Regulatory Commission.
IPOs in China
The China Securities Regulatory Commission has suspended IPO approvals on over 20 companies that are Ruihua clients and many other Ruihua clients have delayed their IPOs (this includes Star Market). I