SEC Considers Suspension of 2 Chinese Companies
June 13, 2011 (Associated Press) The Securities and Exchange Commission is moving to suspend private trading in two Chinese companies.
The regulator said Monday it is considering whether to suspend the registration statements of lighting manufacturer China Intelligent Lighting and Electronics Inc. and advertising firm China Century Dragon Media Inc.
The companies' shares aren't traded publicly, but the SEC said suspending the registrations could protect private investors from buying shares based on false information.
The SEC said it made the decision after the independent auditor for the companies resigned, withdrawing its opinions on their financial and registration statements.
Michael Quinn, an attorney representing China Intelligent Lighting, said the company voluntarily asked the SEC Friday to withdraw its registration.
An attorney for China Century Dragon did not return a call Monday.