High-profile businessman Jiang Jizeng, the former president of China Trust and Investment Corporation for Economic Development, went on trial in Beijing accused of manipulating stock prices in Dongfang Electronics, state media reported.
Jiang, 59, was accused of masterminding a scheme in which China Trust raised RMB 780 million to buy and sell stocks in Dongfang, boosting its stock prices by 190 percent from April to July in 1999 and reaping a RMB 550 million windfall.
Many small investors rushed to buy Dongfang Electronics stocks in the late 1990s based on its outstanding annual reports and surging stock price.
But in 2001 the market regulator found it had made up RMB 1.7 billion in sales in its annual report over five years. Jiang was arrested last July.