The China Securities Regulatory Commission (CSRC) has ordered an investigation into the 999 Pharmaceutical Co, a major listed pharmaceutical firm in China, for suspected false information disclosure and serious problems in fund management.

A CSRC spokesman said on Monday that the firm's problems emerged in a routine inspection by the regulatory body in June.

CSRC investigators found that by May 31, major shareholders and associated sides were appropriating 2.5 billion yuan (US$301.20 million) in funds belonging to the listed firm, which accounts for 96 percent of its net assets.

The investigators also found serious problems concerning the truth, accuracy and completeness of the firm's information disclosure, and the change of the usage of funds raised through stock issuance.

The CSRC has already issued a public criticism of chairman Zhao Xinxian and 13 other directors and supervisors, and ordered the firm to rectify its problems as required.

The CSRC will continue with its probe and will hand out sanctions in accordance with the law, the spokesman said.

(Xinhua News Agency 08/28/2001)