More on Censured Accounting Firm

Caixin: Leading Chinese Accountant Censured For Obstructing Bond Default Probe
China's leading homegrown accounting firm has received stiff punishment from an industry body for obstructing a probe of one of its clients whose subsidiary defaulted on 2 billion yuan ($303 million) worth of bonds, amid a broader crackdown on financial shenanigans by big companies.

Ruihua Certified Public Accountants, LLP. was censured and ordered to suspend services related to bond issues for a year, according to a June 21 announcement by the National Association of Financial Market Institutional Investors (NAFMII), an industry body that helps the central bank regulate the 51 trillion yuan market.

Ruihua was punished for refusing to cooperate with NAFMII's probe of two projects related to Greenland Holdings Corp., whose subsidiary Shanghai Yunfeng Group Co., the company at the center of the default, has defied NAFMII investigators who have been examining the firm's bond defaults and apparent inconsistencies in key financial statements, according to several people close to the situation.

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