THE securities regulator in China rebuked China International Capital Corp. (CICC), saying the country’s top investment bank has failed in due diligence on Lenovo Group Ltd.’s recent application for a US$1.6 billion stock listing in Shanghai. CICC, as the sponsor for the listing, was found to mainly rely on the explanatory documents provided by the issuer to draw conclusive opinions on the firm, according to a notice issued by the China Securities Regulatory Commission (CSRC) last week. The CSRC summoned five CICC bankers involved in the listing for regulatory review Dec. 23, after finding that they have failed to produce sufficient and accurate information to show Lenovo is qualified for a listing on the country’s Nasdaq-style trading board. The staff, including Wang Sheng, head of CICC’s investment banking division, would have the right to appeal to local courts on the regulatory decision, according to the notice, without elaborating. In separate notices released last week, the CSRC also criticized Wanlian Securities and Sinolink Securities for their failure in due diligence on other initial public offerings. CICC didn’t immediately respond to request seeking comment. The investment bank ranked No. 2 in underwriting Chinese companies’ initial public offerings (IPOs) last year. Lenovo, the world’s largest personal computer maker, withdrew the plan to list on Shangha’s STAR Market in October, just days after its application was accepted by regulators. That surprise move led to a plunge in prices of its Hong Kong-listed shares. The company has said the validity of the information in its prospectus may have lapsed during the vetting process. (SD-Agencies) | 