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January 24, 2017

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Home » Business » Finance

Star fund manager sent to jail for fixing

A former star fund manager has been sentenced to more than five years in prison for market manipulation, a court statement said yesterday.

Xu Xiang, the founder and general manager of Shanghai-based Zexi Investment, was given a prison term of five years and six months, the Qingdao Intermediate People’s Court said on its official microblog account.

Co-defendant Wang Wei was sentenced to three years in jail, and Zhu Yong received a two-year term with a three-year suspension.

The trio were also fined but the court didn’t specify the amount.

Between 2010 and 2015, Xu colluded with executives of 13 listed companies and fabricated non-public information either alone or together with Wang and Zhu to enrich themselves with huge profits, the court said in the statement.

It said the executives’ cases were being handled separately.

“The illegal activities sabotaged the normal order on securities trading, and posed bad influence and damage on the management system of securities transactions,” the statement said.

Xu, who was reported to have a personal wealth of over 4 billion yuan (US$584 million), was detained by police in November 2015, five months after China’s stock market crashed in the summer.

As the Shanghai Composite Index plunged 35 percent in three weeks during that period, five of Zexi’s fund products posted at least 20 percent growth in net asset value, listed firms’ quarterly reports and earlier reports of Caixin magazine said.


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