Shanghai Stock Exchange (SSE) has publicly denounced Wanjiang Logistics (formerly Wuhu Port Group), a major port operator and commodity trader on Yangtze River, for making several false trades in 2012 and 2013 in order to increase revenue in its annual financial report.
According to a release by SSE, Wanjiang Logistics made false transactions with a number of metal traders in 2012 and 2013 adding false revenues of RMB9.2bn ($1.44bn) in total.
The profits from the false transactions accounted for 51.36% and 64.64% of the company’s annual profits in 2012 and 2013 respectively.
China Securities Regulatory Commission has punished 24 senior officials of the company.
Additionally, Wanjiang Logistics has announced that Ai Qiang, a senior shareholder and supervisor in the company’s Supervision Committee, is involved in insider trading activities, violating the securities law.
In July, Kong Xiangxi, president of Wanjiang Logistics, along with six board directors, resigned from the company to take blame for the violations on the stock market.