China Securities Regulatory Commission is a strict law enforcer, but this time it was suited by an A-share listed company and lost the lawsuit. Spokesman of CSRC made public comment on the issue on July 11.
The cause of the lawsuit was that Aeolus Tyre was not satisfied with the Administrative Decision for Reconsideration issued by the division of CSRC in Henan province and brought a lawsuit against CSRC and its Henan division.
Last August, Zhengzhou Intermediate People's Court, Henan province, accepted the case.
On June 28, 2016, Aeolus Tyre received the first-instance ruling - the punishment decision made by CSRC Henan and the Administrative Decision for Reconsideration issued by CSRC are to be withdrawn, and CSRC Henan is requested to remake the administrative act after the verdict is upheld.
In the meantime, the legal proceeding of 50 yuan should be undertaken by CSRC and its Henan division.
The case focused on CSRC and its Henan division's affirmation that Aeolus Tyre didn't make accounting and compile financial accounting reports as required in 2011 and 2012.
They reckoned that in Aeolus Tyre's annual reports in 2011 and 2012, the recorded value of some of its businesses were not in accord with the reality.
Aeolus Tyre had replied to CSRC's decision item by item in its announcement.
The tire producer said no false accounting existed in its annual reports as indicated by CSRC and insisted on its claim, and brought an administrative lawsuit.
An industry insider said CSRC being sued and lost a lawsuit were really rare.
CSRC spokesman said on a press release that the administrator received the ruling of first-instance on July 1. If dissatisfied with the first instance ruling, the defendant may file an appeal within 15 days. CSRC has been studying the content of the ruling and will take the next step if necessary.
