A Case Study On The Financial Fraud Of Xintai Electric Company From The Perspective Of Supervision

With the rapid development of economy,China’s securities market is also developing and maturing.However,due to the late start of China’s securities market,the relevant supervision mechanism is not perfect.Although China’s listing supervision has been continuously strengthened in recent years,the exposure of a series of financial fraud cases,such as Wanfusheng and Nanfang shares,can be found that the cases of financial fraud of listed companies are still frequent and repeatedly forbidden,which indicates that there are still many problems in the supervision of listed enterprises in China’s relevant regulatory authorities.Financial fraud cases occur frequently,its not just bad for investor,and produce adverse effect to the development of the securities market,the development of securities market in China has a bad influence.Therefore,how to further strengthen the listing regulation,improve the listing supervision mechanism,prevent and control the financial fraud cases,becomes the problem that the securities market urgently needs to solve.This paper selects the latest typical cases,from the perspective of listing supervision,using literature research method and case analysis method to study financial fraud.In order to be able to successfully conduct financial fraud before applying for the listing,xintai electric company continued to conduct financial fraud after it was listed.After four years of cheating,it broke the moral bottom line and finally was found by the SFC and decided to make a mandatory delisting.Xin tai electric became the first stock market to delist.From the perspective of listing supervision,this paper analyzes the latest typical case of the financial fraud of xintai electric company,analyzes the means used by hintai electric to conduct financial fraud,and explores the causes of financial fraud by using risk factor theory.Based on the above analysis,this paper summarizes the existing problems of listing supervision in China through the cases.From the case study,the following conclusions can be drawn:most of the enterprises in the use of fraud of the financial innovation is not the first time the means,nor how brilliant,but also can effectively avoid market regulation,and often are found after a long time,so our listed there is the lack of regulation.And further analyses the reason of enterprise to concoct deep,can get the following reasons:the management moral accomplishment is low,only pay attention to the pursuit of interests,and listed companies often face and warranty card as well as the pressure of government achievement,at the same time,the imperfection of the internal and external related regulation and provides opportunity,and the probability of exposure penalties following exposure to smaller and lighter.The above reasons can sum up the specific problems of the listing supervision.Fundamentally,it is because of the loopholes in internal and external supervision and management that enterprises choose to conduct fraud.So,based on these conclusions,to make a small point of view,it is a good idea to increase the regulation of the market in the light of the summary,and to provide a good investment environment for the future of our stock market,to provide a good investment environment for investors,and to ensure that the securities market has a good development order in the future.