(AP) — A prominent investor and the general manager of China’s biggest
stock brokerage have been arrested on insider trading charges, the
government announced Friday, in the latest aftershock from a plunge in
stock prices last year.
Xu Xiang, an investment fund manager who was detained Nov. 2, is charged
with "stock market manipulation and insider trading," the official
Xinhua News Agency said, citing law enforcement agencies in the eastern
city of Qingdao. The two-sentence report gave no other details.
Prices hit a peak June 12 and collapsed after changes in banking
regulations fueled suspicions Beijing might withdraw its support. The
benchmark fell more than 30 percent, inflicting heavy losses on novice
investors who had bought in near the peak.
The downturn triggered complaints politically favored insiders profited
at the expense of small investors. Beijing responded by barring large
shareholders from selling and ordering executives to buy back stock in
In August, Xinhua said eight Citic employees and one current and one
former employee of the Chinese market regulator were suspected of
illegal stock trading. A reporter for a business magazine also was