Fujian Nuoqi listed in Hong Kong in January 2014, raising RMB342m (US$44m). Shortly afterwards, its chairman misappropriated the IPO proceeds by transferring cash to an unrelated BVI company and by using the remaining proceeds as security for loans to third parties, who were presumably accomplices. When the chairman disappeared in July 2014, the share price collapsed and its shares were suspended at the company's request. A subsequent investigation revealed losses and impairments of RMB947m (US$153m), more than 4x the pre-tax profits generated in the two-year period before the IPO. This suggests that profits were probably faked pre-IPO. The company entered administration in 2015 and was finally delisted in 2021.

Last updated August 2021

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