(Yicai Global) Nov. 23 -- Many A-share listed companies have begun selling their assets as the year comes to a close, with several non-real estate companies recording a substantial decrease in the amount of investable property in their third quarter reports when compared with semi-annual figures.

Regulators have ramped up supervision to combat profit manipulation at China's listed firms, with several companies receiving inquiry letters from stock exchanges after selling off assets.

Some 1,515 companies disclosed information on their investable real estate in first-half reports this year, and 1,538 firms disclosed the data in the third quarter reports, data from Wind shows. Several non-real estate companies sold of property, including Shanghai Yaoji Playing Card Co. [SHE:002605], which reported CNY122 million (USD18.5 million) of investable real estate after the second quarter and just CNY74.2 million after the third.

'Special treatment' companies, those with three straight years of losses and at risk of delisting, are under great pressure to turn a profit and are keen to sell off assets. Some 26 of 66 such companies made a loss over the first three quarters, Wind data shows.

Some listed companies made major transactions or accounting adjustments in order to swing themselves into the black and avoid delisting. Regulatory departments and stock exchanges will attempt to enhance regulation on profit manipulation, and the China Securities Regulatory Commission (CSRC) will conduct on-site inspections as appropriate, said Chang Depeng, spokesperson for the CSRC.

Profit manipulation at the end of the year results in false corporate financial reports, Chang said. These reports need to be true and complete to show companies' financial situation, operating results and cash flow. If these companies only make profits by shifting debts, selling assets and changing accounting policies, it will serious damage investors' interests, especially those of small-time investors.