China's top securities watchdog on Friday initiated the compulsory process todelist an electric equipment manufacturer, for fabricating financial information in its application for an initial public offering.

Dandong Xintai Electric Co became the first listed firm in the Chinese mainland to be delisted from the exchange for IPO fraud since the securities regulator unveiled stricter delisting rules in 2014 in an effort to restore investors' confidence and eliminate errant companies.

China Securities Regulatory Commission spokesman Zhang Xiaojun told a news conference on Friday the regulator would continue its zero tolerance of financial fraud and the violation of information disclosure rules by public companies.

Industrial Securities Co Ltd, the underwriter of Dandong Xintai's IPO in 2014, was ordered to pay 550 million yuan ($82.2 million) to compensate investors' losses, in addition to a 57.3 million yuan fine.

The securities regulator said it had also fined Dandong Xintai 8.32 million yuan for its transgression and its senior executives were barred from the securities market and serving in senior executive positions at any listed companies for life.

The delisting could also mean a permanent exit from the stock market for the company as there is no legal arrangement for relisting companies that have been delisted from the startup board.

On Friday, Dandong Xintai's Chairman Wen Deyi said his company would consider applying for bankruptcy, as the group owes debt of 626 million yuan, according to the Chinese newspaper the 21st Century Business Herald.

The company was found guilty of fabricating financial information in its IPO application, including inflating amount of receivables, after the securities regulator launched an investigation against it a year ago.

The company, from northeastern Liaoning province, debuted on the startup board of the Shenzhen Stock Exchange in 2014, raising 350 million yuan.

The delisting follows the exit of Zhuhai Boyuan Investment Ltd from the stock market in May over violation of information disclosure rules.

lixiang@chinadaily.com.cn