The Case Research On The Financial Fraud Of KH Company

China’s securities market has been explored for more than 20 years, and now there are thousands of listed companies. With the development of economy, the Stock market and relevant legal system of our country is more and more perfect, not only the establishment of a unified national regulatory system, but led to the development and reform of the financial system,accelerate the transformation of the society. China’s securities market is developing rapidly, but after all started late, the development time very short, exposed many problems. Listed companies IPO fraud, financial fraud incidents also occur. From the Shenzhen yuanye,Hong Guang and Yin Guang Xia’s financial fraud case to the nearest Wan Fu Sheng Ke, Hua Rui and Jin Ya’s financial fraud case ,a large number of financial fraud cases exposed. This will not only hit the confidence of the majority of investors, reduce the vitality of the capital market, it will seriously disrupt the normal economic order, the government’s authority to openly challenge.In recent years, the capital market M & a magic show, Stock marke ushered in the tide of mergers and acquisitions. Statistics show that since 2013, nearly 2000 listed companies or mergers and acquisitions to prepare for backdoor listing. The so-called backdoor listing,is a strong asset and without a listed company after obtaining control of a listed company through the acquisition, asset replacement, the parent company put into operation at the parent company listed into effect. Chinese Commission has issued a"major asset restructuring of listed companies management approach", "major asset restructuring of listed companies information disclosure Memorandum No. seventh backdoor listing standards and conditions" and other relevant provisions of standard backdoor listing process, although the listing means to accept the supervision of countless pairs of eyes, but in order to raise more funds, many fancy enterprises in violation of laws and regulations, contrary to the moral integrity of the way to put their lives at risk by financial fraud to whitewash performance, for investors to build a mirage.This behavior has seriously affected the healthy development of the securities market,must strike out to regulate.KH is a typical representative of an attempt to seek backdoor listing through a whitewash report, known as the "second Wan Fu Sheng Ke," February 14, 2016, China Securities Regulatory Commission to make severe punishment for financial fraud of KH company for China The stock market sounded an alarm. This paper KH-depth analysis of company fraud case, divided into four parts, first describes the research background and the purpose and significance of the article summarizes research content and methods.Next, the case is described KH company and the backdoor listing backdoor party --BS company. brief introduction, and then describe specific company KH fraud. The third part mainly analyzes the means used in this financial fraud,and analyzes the motivations of the fraud by using GONE theory and KH’s specific situation. Finally, for the inspiration and suggestions, from the KH case analysis found in the problems and drivers,put forward targeted recommendation .