In a statement, Sinovel said it received a notification of investigation from CSRC on Sunday 12 January. It said: "[The company] is willing to cooperate with CSRC during the investigation, and therefore suspend its listing and floating of shares."
This is the CSRC's second investigation into the turbine manufacturer in eight months.
In response, Sinovel's share price on the Shanghai Stock Exchange plummeted 9.92% to CNY 3.54 ($0.58) today.
On 30 May 2013, CSRC said in its report that it had started investigating Sinovel for suspected irregularities such as inflated income, cost and profit.
In April 2013, Sinovel said it had decided to correct its 2011 annual financial report. Its turnover was reduced from CNY 10.436 billion ($1.7 billion) to CNY 9.506 billion ($1.6 billion), and net profit from CNY 0.775 billion to CNY 0.598 billion.
Sinovel explained this was a result of self-examination, and the errors were made by miscalculating incomes from projects in which turbines were not installed by the end of 2011, meaning the incomes should be counted for 2012 instead.
But the error was serious considering Sinovel floated its shares on the Shanghai Stock Exchange on 13 January 2011 with an issue price of CNY 90 per share, a record high on the stock exchange. It raised $13.97 billion in the IPO, 28.1% of the total IPO funds raised in the Chinese wind power sector in the previous five years.
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