Five sentenced in major stock manipulation case

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Last updated at: (Beijing Time) Friday, September 26, 2003

Five sentenced in major stock manipulation case

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A local court in Guangzhou, the capital of south China's Guangdong province, has sentenced five persons involved in a massive stock manipulation case to jail terms ranging from two years and three months to three and a half years.

Between October 1998 and February 2001, a number of manipulators, including the five people, guided the prices of the stock "Yi'an Science", on the Shenzhen Stock Exchange, one of the two bourses in China.

Through a series of sophisticated manipulative activities, under over 700 different names, the criminal group used 3.7 billion yuan (about 450 million US dollars) to send the prices of the stock skyrocketing to 126.31 yuan (more than 15 US dollars) from 7.55 yuan.

The manipulation resulted in huge profits of approximately 460 million yuan (almost 56 million US dollars) and aroused serious concern among the public.

In recent years, the government has looked into and punished a number of stock manipulation cases, in an effort to regularize thestock market.

The five people are: Li Hongqing, vice-president of Yi'an Group,on Thursday sentenced to three and a half years; Luo Jianzi, three and a half years plus a fine of 500,000 yuan, or around 60,000 US dollars; Cheng Bingfang, two years and nine months; He Xinxiang, two years and three months; and Wang Qi, two years and three months.

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