Another China Firm Joins Growing List Queried on Financials

A Chinese display product maker has been questioned by the Shenzhen Stock Exchange on its cash usage, joining a growing list of firms whose financials are being scrutinized by the nation’s regulators, Bloomberg News reported. Beijing-based Tunghsu Optoelectronic Technology Co. was asked by the bourse to explain the rationale in paying high expenses on its debts when it reported ample cash in 2018, according to a statement on Wednesday. The company was also required to spell out the reasons for issuing convertible bonds when it reported 19.8 billion yuan ($2.9 billion) cash as of end-2018. China’s companies are coming under greater scrutiny by regulators on their accounting, putting a spotlight on disclosure practices in a country where companies are defaulting at a record pace. Read more

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