Securities fraud case on trial

China is trying 25 people in a Hainan province fraud case for allegedly embezzling US$3.15 billion, according to Chinese media reports. Former Dalian Securities President Shi Xue and financial executives at other securities firms are undergoing trial for allegedly stealing state funds, using false contracts, and illegally raising money. Shi Xue allegedly single-handedly embezzled US$31.5 million, the largest amount recorded for a single person tried in Chinese courts. Shi allegedly gathered a total of US$290.6 million from clients illegally. Dalian Securities was closed down two years ago after it defaulted on debts worth US$96.8 million. Analysts said that China is cracking down on widespread illegal securities trading practices, attempting to reform the industry.