Based on open information, altogether seven members of the CSRC's stock listing approval committee participated in the approval procedures for Wanfu Biotechnolgy. They are all senior accounting and legal professionals and it is hard to believe they were not able to spot the financial problems in the company's books. So the public is eager to learn why they gave the green light to Wanfu Biotechnology's application.
If the stock listing approval committee cannot clarify its role in the process of listing approval, it is reasonable to suspect that many other companies may also have listed fraudulently.
The Chinese stock market has long been accused of irregularities, and to clean it up harsher punishments must be meted out to companies that falsify their financial data and those that enable them. Punishments must be made harsh enough so that the price of cheating is too high to afford.