Loans to Topsoft parent investigated
2 August 2004
Chengdu-based Shenzhen-listed software house Sichuan Topsoft said the China Securities Regulatory Commission was investigating the company over loans it guaranteed for Sichuan Topsoft Investment, its parent company. The investigation was triggered by Topsoft's disclosure that it made RMB 2 billion in loan guarantees leading to 18 months of losses. The news sent its share price further down, having lost 46% of its value since the beginning of the year. State media suggested Topsoft could be the latest example of state-owned enterprises using their publicly listed spin-offs as piggy banks.
