The China Banking and Insurance Regulatory Commission confirmed the scandal involving Nasdaq-listed Kingold Jewelry for the first time, as it stressed the need to clamp down on financial irregularities and fraud over the weekend.
In a statement issued on Saturday, the watchdog also summarised the major challenges and risks the country’s financial sector had faced this year.
“A number of banking, insurance, and trust institutions were involved in the Wuhan Kingold Jewelry fake gold incident, which was gradually disclosed starting in January 2020,” the commission said. “Other than the problems associated with the company itself, the incident also revealed that the internal controls and risk management of some financial institutions were empty shells.”
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