Companies have been advised by China's securities regulators against leveraging their acquisition of items that might have been acquired using dubious methods. During a Saturday meeting of the Asset Management Association of China, Liu Shiyu, Chairman of China Securities Regulatory Commission, spoke out strongly against the act. 

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Liu pointed out that the act was not only unethical but also against China's rules and regulations in the stock market trade, according to a report by Bloomberg.

"Such acquisitions show 'retrogress and decay' in humanity and commercial morals, and is by no means financial innovation," Liu said.

Liu added that "by using improperly obtained money to conduct leveraged acquisition, you've gone from strangers at the gate, to barbarians and eventually robbers of the industry." He said that such actions would not be tolerated.

Liu's harsh remarks were greatly factored by the ongoing scramble between China's Evergrande group, Baoneng, and China Resources who has the biggest share in China's biggest property developer Vanke.

Last year, the two horse race between Vanke and Baoneng got verbal when Vanke founder Wang Shi referred Baoneng as "barbarians."

Evargrande is recently in the fray after it acquired 13 percent shares of Vanke. China Resources owns 15.3 percent and Baoneng is the guru with 25.4 percent shares.

Finance professor at Renmin University Zheng Zhigang in a statement said that the scramble to acquire Vanke would trigger aggressive business venture in China's markets in the months to come, according to a post by the South China Morning Post.

The report quoted Zheng saying that there were great repercussions if certain rules on how top operate are not followed, and China's economy stands to be the overall loser.  

Tagschina, stock market, Vanke, Baoneng, China Resouces, Evergrande group