The China Securities Regulatory Commission has started delisting procedures on Shenzhen-listed Dandong Xintai Electric. This makes Xintai the first company to be delisted from ChiNext for IPO fraud.

The securities watchdog fined the company and 17 senior executives a total of some 19 million yuan, and banned the company's chairman and chief financial officer from re-entering the securities industry for life.

The Shenzhen stock exchange will seek a trading suspension in the company's shares, and said Xintai may not be allowed to relist. In 2014, Xintai raised 350 million yuan from a ChiNext IPO.

Last month, the company received a notice from the CSRC on alleged financial irregularities in its IPO prospectus and its 2013 and 2014 financial reports, including accounts receivables fraud and inflating cashflow.