Investor jitters over the financial risks of small Chinese stocks are set to escalate after Longtop, a Chinese software company listed in New York, ann-ounced the resignation of its independent auditor and its chief financial officer.
The software company also said it was being investigated by the US market regulator.
Longtop said Deloitte Touche Tohmatsu resigned on Sunday as the auditor of the company because information in the company’s accounts regarding cash at bank and loan balances, and possibly regarding sales revenue, had recently been found to be falsified.
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