Additional details have emerged about the alleged insider trading scheme of Wong Kwong-yu, Chairman of Gome Electrical Appliances and said to be the “richest person in China.” In November, as discussed here, Wong was detained and questioned by police according to the Chinese press.
According to reports in China Business News and JLM Pacific Epoch, Wong directed employees of his real estate company to go to Shenyang, Liaoning province in September 2007 to open dozens of securities accounts to buy shares of Beijing Centergate Technologies with Hong Kong funds. The employees reportedly “took their classmates and borrowed I.D. cards to purchase shares with inside information that Wong would inject his real estate business into Centergate Technologies.”
Wong’s executive duties were suspended by Gome on December 23, and he has been under investigation by the Beijing Public Security Bureau since mid-November, according to JLM Pacific Epoch.