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China regulator targets funds misappropriation at OTC-listed firms: report

[SHANGHAI] Chinese regulators have launched an inspection into whether money owned by companies listed on the country's biggest over-the-counter (OTC) equity exchange is being misappropriated by their parents or affiliated firms, the 21st Century Business Herald reported on Monday.

The operator of the New Third board has asked underwriters to collect information on how money is being used at 3,107 companies listed on the OTC exchange, the newspaper said, citing unidentified sources.

The inspection came after 2015 annual reports revealed that the situation of fund misuse is quite serious at some companies, according to the article.