In 2013 there were many events in China's capital market that made investors both angry and disappointed. One such event was the fraud during the initial public offering (IPO) by Wanfu Biotechnology (Hunan) Agricultural Development Co. Ltd.

Soon after the company was listed at ChiNext, the country's growth enterprise board, in 2011, there were reports claiming that Wanfu became qualified for the IPO by overstating its business achievements, but the company denied the allegations. Under continuing investigation and condemnation by experts and the media, Wanfu admitted on March 2, 2013, that it cooked its aggregate revenues and profits during 2008-11, exaggerating revenues by 740 million yuan ($121 million) and profits by 180 million yuan ($29 million).