144 million yuan deceived for bribery!

Global Coatings Network News:

Recently, Tianhe Chemical Group ("Tianhe Chemical"), the first-tier network supplier of Sinopec and PetroChina, sought to resume listing in Hong Kong stocks, and was cheated by bribery of up to 144 million yuan!

Image source: Sina Finance

On the road to resumption of trading, as much as 144 million yuan was deceived by bribery

After the second suspension of trading, Tianhe Chemical has been looking for a "shortcut" to resume trading.
According to the data, from April 2015 to July 2017, Zhang Mou, deputy general manager of Tianhe Chemical Group, was reinstated by Beijing Jingwei Anhua Investment’s legal representative Yang Youmin, and Beijing Hongge Arts & Crafts Center Manager Fu Puliang, in order to resume trading.
The driver Fu Mantao, Gao Heng, the legal representative of Suzhou Hengjin Investment, and Huang Lilin, Fu Lin and others took turns defrauding 10 million yuan, 29 million yuan, 20 million yuan, and 85 million yuan for a total of 144 million yuan.
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After being deceived for more than two years, on September 1, 2017, Tianhe Chemical found out that it was deceived and commissioned an affiliated company to report the case in Beijing.
What is even more surprising is that according to the final trial documents, of the 6 persons involved in the frauds involved in this case, 5 have only a high school education and 1 has a university education.
The three principal offenders were eventually sentenced to life imprisonment.

727 million fines! The Hong Kong Securities Regulatory Commission issued high fines to all joint sponsors of Tianhe Chemical

During the second suspension, the Hong Kong Securities Regulatory Commission launched a comprehensive investigation into Tianhe Chemical's suspected financial fraud.
On March 14, 2019, Tianhe Chemical imposed a penalty of up to HK$727 million for the negligence of the four sponsors during the listing application process.

The four sponsors involved in penalties are UBS (UBS AG and UBS Securities Hong Kong Limited), Morgan Stanley (Morgan Stanley Asia), Bank of America Merrill Lynch (Merrill Lynch Far East Limited) and Standard Chartered Securities.

In addition to the heavy fines imposed on four investment banks, the Hong Kong Securities Regulatory Commission also revoked UBS's license to advise on institutional financing, and also revoked the license of a UBS employee for two years.

According to the latest announcement issued by Tianhe Chemical on April 30, 2019, the company has actively taken measures to respond to the concerns of the China Securities Regulatory Commission.
In June 2018, the company has submitted the most recent submission to the Securities Regulatory Commission in response to its concerns and sought the consent of the Securities Regulatory Commission for allowing the company's shares to resume trading.
As of the announcement date, the company is waiting for the CSRC to respond to the submission.
The company cannot make a precise estimate of the time required for consideration by the China Securities Regulatory Commission or whether it has further questions, but will closely monitor the relevant developments.
The company has also appointed an external consultant to advise the resumption committee on matters related to the resumption of trading of the company’s shares.

Trading of the company's shares will continue to be suspended on the Stock Exchange until further notice.