The China Securities Regulatory Commission suspended GF Securities Co. Ltd. from acting as a sponsor for six months and underwriting bonds for 12 months, following its ties to alleged fraudulent financial activities linked to a third-party pharmaceutical company.

The regulator also banned 14 executives at the brokerage from investment banking work for between 10 years and 20 years, and required them to give up compensation tied to the fraud, according to a July 10 release.

Kangmei Pharmaceutical Co. Ltd. was allegedly involved in financial reporting fraud involving 88.6 billion yuan, Caixin reported July 11. GF Securities sponsored the company's IPO in 2001 and then assisted with financing deals, the report said.

As of July 10, US$1 was equivalent to 7.00 Chinese yuan.