HONG KONG: One of China’s largest listed drug makers that’s been under a regulatory probe for months said it overstated cash positions after using false documents and transaction records. Kangmei Pharmaceutical Co., a producer of traditional Chinese medicines, said in a filing on Wednesday that such methods have led to an overstatement of cash holdings by 29.9 billion yuan ($4.3 billion). The revelation came after Chinese securities regulator concluded earlier this month that the company probably fabricated bank deposits and other financial transactions. GP Certified Public Accountants, the accounting firm for Kangmei, has been under investigation by the stock market watchdog since earlier this month. The company said earlier this month related parties used the firm’s funds to trade its shares.- Bloomberg

Source: The Star May 29, 2019 02:15 UTC