The Aosaikang IPO debacle has revealed the extent of problems in the Chinese stock market, which apparently caught the watchdog agency by surprise.

After many months of preparation, highlighted by the introduction of a fresh approach augmented by a new set of rules, the China Securities Regulatory Commission, or CSRC, lifted the year-long moratorium on IPOs, allowing a host of companies to join the rush to raise money from the already beleaguered stock market.

First out of the gate was Aosaikang. But it didn't get far before the CSRC gave the order to abort because of glaring irregularities.