A Collaboration with the University of Pittsburgh

China prosecutors charge billionare with insider trading

[JURIST] A Beijing court on Friday indicted Huang Guangyu, formerly China's richest man [Hurun report], with insider trading, bribery, and illegal business practices. The charges [WSJ report], brought by the Supreme People's Procuratorate [official website, in Chinese] come almost 15 months after Huang was initially placed under detention. His case has been the subject of intense media coverage in China involving allegations of bribery [Xinhua reports] to high-level Shanghai police among others. According to reports, Huang has been under investigation [EO report] by the Beijing Municipal People's Procuratorate for more than two years. He was previously the chairman of Pengrun Investments and founder of subsidiary GOME Electrical Appliances [corporate website], both publicly traded on the Shanghai and Hong Kong stock exchanges.

Huang's indictment is part of a wider campaign in China to crack down on corruption, which is seen by many as a threat [CE report] to China's future stability. Last week, the president of the Supreme People's Court (SPC) [official website, in Chinese] called for increased efforts [JURIST report] to fight corruption among the judiciary. The president's statement came just two weeks after former SPC vice president Huang Songyou was convicted [JURIST report] on bribery and embezzlement charges. Earlier in January, the Communist Party of China [GlobalSecurity backgrounder] announced [JURIST report] increasing oversight of the families of government officials to control corruption. Leader of the People's Republic, Hu Jintao [official profile], has made it a priority to combat grafting in China [Straits Times report], utilizing the Central Commission for Discipline Inspection [official website; in Chinese] to coordinate anti-corruption efforts among the public security, finance, judiciary, and diplomatic agencies.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.