One of the first eight companies to list on China's just-established SME (small and medium-sized enterprises) board of the Shenzhen Stock Exchange was denounced Sunday for not honestly revealing its financial items.

Jiangsu Qionghua high science and technology company, whose stock price rocketed on June 25, the first day the Shenzhen SME board formally started its trade business, was publicly condemned by the Shenzhen Stock Exchange for concealing the fact it entrusted a total of 25 million yuan (about 3 million US dollars) to two stock companies for management.

This is the first company listed on the SME board to be denounced by the Shenzhen Stock Exchange.

The fraud activity will be recorded in the files for companies listed on the SME board, according to the Shenzhen Stock Exchange.

The Shenzhen Stock Exchange in southern Guangdong province officially inaugurated the SME board on May 27, aiming to facilitate financing for China's emerging small and medium-sized enterprises, which is in dire need of funds but have few fund-raising channels.