The China Securities Regulatory Commission has started de-listing procedures on Dandong Xintai Electric for IPO fraud. If completed, the move will make Xintai the first A-share company to be de-listed from the Chinese stock markets.

The Shenzhen-listed Xintai Electric has been found forging fake sales figures and violating information disclosure rules for its initial public offering. The Chinese stock market regulator CSRC announces today that it will start official punishment procedures on Xintai and will kick it off the stock market.

Share prices of Xintai have plunged from a peak of 20.47 yuan per share in 2015 to 3.03 a share at the closing of August 22nd. Suffering from huge losses, some investors are mulling to file lawsuits against the company.

"I bought 300,000 yuan worth of Xintai shares in June 2015. But I suffered huge losses after the fraud investigation began. In fact I lost 90 percent of my money," said Li Wei, Xintai stock investor.

"We have not been informed any compensation plan by Xintai so far, so start a lawsuit will have to be our only choice now," said Xintai investor.

Xintai will not be allowed to re-list after being de-listed. Last month, Industrial Security, a major underwriter of Xintai IPO also announced that it will set up a fund of 550 million yuan to compensate investors.