Prevention Of Financial Fraud Of Listed Companies

The China's securities market established since the early 90s,more than 2,000 listed companies have been active in the securities market,the number of investors is also increasing,increasing market participation.In order to safeguard the "open,fair and fair.securities market order,China has promulgated the "Securities Law","Company Law" and "Accounting Standards for Business Enterprises" and other laws and regulations to protect the interests of investors,but the SFC every year to investigate and deal with listed company Illegal violations do not diminish,seriously damaging the interests of investors,should be more and more attention by regulators and the majority of investors.July 8,2016,the Commission issued a notice on the Xin Tai Electric IPO financial fraud,thus Liaoning Dandong Xintai Electric became the first in the Chinese securities market because of IPO financial fraud,fraud issued a compulsory delisting of listed companies,and Punishment Notice Xintai Electric will not be re-listed after delisting,and the SFC has made administrative penalties for the relevant intermediaries Societe Generale Securities and Xinghua Certified Public Accountants and Donghua Law Firm.This paper first combs the theory of financial fraud,and then reviews the research situation of financial fraud at home and abroad.Then,taking Xintai electrical financial fraud as a case,combined with Wanfu Shengke and other similar cases,The author analyzes the motivations,fraud practices and fraud of Xintai electrical financial fraud,and finally draws the conclusion,and puts forward the corresponding suggestions for our legislature,the regulatory body and the listed companies.