Well-Known Fund Manager Stands Trial for Market Manipulation

(Beijing) — A high-flying private-fund manager is being tried today in Qingdao, Shandong province, on a charge of stock market manipulation involving billions of dollars.

Xu Xiang, the 40-year-old founder and general manager of the Shanghai-based asset management firm Zexi Investment, and two other investment firm managers are accused of conspiring with 23 senior executives of 13 listed companies beginning in 2011 to make illicit profits. They are charged with manipulating share prices through the way in which they issued positive news about companies and through large-volume purchases — all in a bid to lure retail investors to follow suit. The executives then sold their stock and split the profits with the fund managers.