China's No. 1 Stock Manipulation Case Heard

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Last updated at: (Beijing Time) Wednesday, June 12, 2002

China's No. 1 Stock Manipulation Case Heard

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The Shenzhen China Venture Capital Co. case, China's No. 1 stock manipulation lawsuit, was heard in Beijing's Second Intermediate People's Court on June 10.

The main suspect Ding Fugen, who was accused to have manipulated the share price, confessed they fried up the share price of the Shenzhen China Venture Capital Co. from around 10 to 80 yuan through illegal means.

There was a sudden slump in the share price of the said company in 2000, seriously disturbing the order of the stock market. Suspecting certain manipulative hands might be shaking the share prices, China Securities Regulatory Commission put the case on file for investigation last January.

In the law court, public prosecutor noted the suspects Lu Xinjian and Zhu Huanliang, both have now escaped to nowhere, profiteered the stock dealing through 1,500 accounts, clustering and maneuvering over 5.4 billion yuan (US$653 million).

According to the investigation, Lu and Zhu manipulated the company's price from December 1998 to January 2001.

Henceforth, Lu asked Ding Fugen, Pang Bo and several other people to merge with Shanghai Huaya Co. and sign cooperation agreements with over 100 companies and individuals under the names of the Shenzhen China Venture Capital Co. and Beijing Kewo Technology Lt. Co., allegedly raising more than 5.4 billion yuan (US$653 million).

By PD Online Staff Yang Ruoqian

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