Analysis of IPO Fraud: Evidence from Amethystum Storage

Abstract

The Science and Technology Innovation Board (STAR Market) was established on the Shanghai Stock Exchange and was officially listed on June 13, 2019. The establishment of the Science and Technology Innovation Board and the pilot registration system is a major reform measure of the capital market to enhance and serve the capabilities of technological innovation enterprises. With the increasing development of the capital market, IPO has become one of the important channels for corporate financing. Due to the more inclusive listing conditions on the STAR Market, more and more innovative companies choose to list on the STAR Market. However, the problems of IPO financial fraud are emerging one after another, showing the characteristics of initiative, systematic fraud, concealed means, huge amount, and long fraud cycle. It has adversely affected the economy and society. Hence, the article sorts out the financial fraud cases before and after the IPO of Amethystum Storage, a company listed on the Science and Technology Innovation Board last year, expounds the reasons for its IPO violations, and proposes from the perspective of securities companies. Countermeasures to prevent fraudulent listing of enterprises. These results shed light on guiding further policy implementation for IPO.