A leading Shanghai legal firm is seeking to represent disgruntled investors in a law case against China National Fisheries Corporation (CNFC) over potentially misleading statements by the company on its 2015 corporate results of its listed arm, CNFC Overseas Fishing Co Ltd.
The Chuang Yuan law firm (also known as Trend Law Co.) has been publicly advertising for investors to contact it to discuss taking the case, which is based on a damning report by China’s securities regulatory watchdog critical of CNFC. The China Securities Regulatory Commission also levied a fine on CNFC – which is listed on the Shenzhen Stock Exchange – for what it said were inaccurate statements to investors regarding its 2015 performance. Chuang Yuan has taken numerous similar cases against other listed companies on similar grounds.
State-controlled CNFC, meanwhile, has announced a restructuring to reduce competition with its parent holding company, the China Agricultural Development Group Co. – also part of the Chinese government. The two entities have announced they’ll together form China Agricultural Development Group Zhoushan Oceanic Fisheries Co., Ltd. CADC will invest CNY 420 million (USD 61.5 million, EUR 53.1 million) in the venture in a combination of cash and investment in fishing vessels.
