# Accounting Scandal

The 'Reverse Fraud' Scandal: Why a Chinese Industrial Giant Chose to Hide Its Profits

Shandong Zhanggu has been designated as an 'ST' stock after regulators discovered it fabricated expenses to understate its 2024 profits by 8.46 million yuan. The scandal emerged during a transition of power where state-owned entities took a 50% stake in the board, ending 30 years of family control.