<p>China will show "zero tolerance" towards securities and accounting fraud and will step up a crackdown on major capital-markets crimes, financial regulators said after a meeting of the Financial Stability Development Committee.</p>.<p>The meeting on Sunday was chaired by Vice Premier Liu He, the cabinet-equivalent State Council said in a statement.</p>.<p>The regulators said they would toughen penalties and establish a crime-busting team with relevant agencies to strengthen cooperation.</p>.<p>They would also deepen the reform of the market's delisting mechanism to weed out bad companies from the country's stock markets.</p>.<p>China has been trying to limit the country's reputational damage after accounting scandals at companies including Kangmei Pharmaceutical and Kangde Xin Composite Material Group.</p>.<p>The China Securities Regulatory Commission (CSR) on Friday punished GF Securities Co for its role in the $12.6 billion financial fraud at drugmaker Kangmei.</p>.<p>GF Securities was banned from the securities-sponsor business for six months, and from bond underwriting for a year. </p>
<p>China will show "zero tolerance" towards securities and accounting fraud and will step up a crackdown on major capital-markets crimes, financial regulators said after a meeting of the Financial Stability Development Committee.</p>.<p>The meeting on Sunday was chaired by Vice Premier Liu He, the cabinet-equivalent State Council said in a statement.</p>.<p>The regulators said they would toughen penalties and establish a crime-busting team with relevant agencies to strengthen cooperation.</p>.<p>They would also deepen the reform of the market's delisting mechanism to weed out bad companies from the country's stock markets.</p>.<p>China has been trying to limit the country's reputational damage after accounting scandals at companies including Kangmei Pharmaceutical and Kangde Xin Composite Material Group.</p>.<p>The China Securities Regulatory Commission (CSR) on Friday punished GF Securities Co for its role in the $12.6 billion financial fraud at drugmaker Kangmei.</p>.<p>GF Securities was banned from the securities-sponsor business for six months, and from bond underwriting for a year. </p>