Phantom $4 Billion Joins Accounting ‘Land Mines’ Shaking Chinese Market

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More companies in China’s stock market are under the microscope as regulators scrutinize their financial reporting

SHANGHAI—A drug company at the center of one of China’s biggest corporate crises on Monday suspended trading in its stock, after admitting it had been secretly buying its own shares.

The suspension of Kangmei Pharmaceutical Co. occurred after the market regulator laid out how the Shanghai-listed company had inflated its cash holdings by more than $4 billion, and said it had diverted $1.3 billion into purchasing its own stock.

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Oh how shocking. Institutionalized corruption in China.

Remind’s me of Trump calling himself a $10billion-naire

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