China has come very far since its reform & opening policy 30 years. It is currently the most capitalistic country on earth as far as its economic policy is concerned. However you need to know that the Chinese Government does not allow "chaos" in anything. They are in tight control for that single purpose. From the over 5000 years Chinese history, the Government learns that any small chaos can brew to become huge troubles for the entire country. The Chinese proverb runs "Only a harmonious family with peace can bring prosperity. So it applies to a country." That gives room for the western media to spin their stories. The western media, especially the American media such as AP news, is biased against mainland China. It's something typical of the republicans against the democrats here in the U.S.A. Each side like to put a negative spin on any news concerning the other party. Sadly that has become the American way of life nowadays.
If you think SEC is not doing its job, then AP news is not doing its job for the American public in reporting any news on China. They like to interview one single Chinese who complains against the Chinese Government and paint it as if the whole country is oppressed by the Government.
The business newspapers in America is generally more objective.
Here is a piece of old news on February 16th, but it gives you a brief review of what Sanyuan is.
SHANGHAI -- Shares of Chinese dairy firm Beijing Sanyuan Foods Co. surged by the 10% daily limit Monday, on expectations it will buy the assets of Sanlu Group Co., the company at the center of last year's milk-contamination scandal.
It was the first day of trading for Sanyuan's shares since they were suspended Sept. 26 pending a company announcement on the bid for Sanlu's assets. The shares rose to 6.15 yuan (90 cents) on the Shanghai stock exchange; they had closed at 5.59 yuan on Sept. 25.
Sanyuan, which also operates McDonald's Corp. franchise stores in Beijing and Guangdong province, said Saturday it is planning to bid for the assets of Sanlu, which was declared bankrupt last week. Sanlu had stopped production Sept. 12, after complaints that tainted milk from Chinese dairy companies had sickened thousands of children and killed six. Tian Wenhua, the former general manager and chairwoman of Sanlu, was sentenced to life imprisonment last month.
The Sanlu assets, including land, property, equipment and investments in other dairy firms, have an appraised value of 726 million yuan ($106.1 million), Sanyuan said in a statement posted on the Shanghai bourse's Web site Saturday. Sanyuan said it is willing to pay no more than 110% of the appraised value. The assets will be auctioned March 4 at the Intermediate People's Court of Shijiazhuang, capital of north China's Hebei province, according to the official Xinhua News Agency.
Obtaining Sanlu's assets would help Sanyuan, a second-tier dairy producer currently focused on the Beijing market, compete against larger rivals, such as China Mengniu Dairy Co., Inner Mongolia Yili Industrial Group Co. and Bright Dairy & Food Co., analysts said.
Sanyuan is not the same as Synutra. Sanyuan, a general food company, has been eyeing this piece of milk business ever since sanlu scandal occurred.
Who would fill the market shares lost by Sanlu? Sanyuan is one of them. It gains more because Mengniu and Yili are already in the business and is tarnished in its image. Consumers were afraid to buy existing brands from last September. of course the situation has gradually changed back to normal, especially since the Chinese new year in February.