(CBN - Global) April 14 -- Qingdao City Public Security Bureau has suspended trading of shares in four Shanghai-based listed companies of Mr. Xu Xiang, a high-flying hedge fund manager investigated for insider trading, after they were suspended by Shanghai authorities last year, suggesting that his trial may take place in the courts of Shandong Province and not Shanghai.
The aggregate market value of these share holdings is CNY6.57 billion (USD1 billion).
It is standard practice for corruption cases in China to be heard in a location unassociated with the person under investigation, to prevent any outside influence on the court proceedings.
Mr. Xu was general manager of the Shanghai-based investment company Zexi Investment and was arrested in November 2015 for suspected insider trading. He is accused of colluding with the directors of more than 50 companies listed as A-shares on the Shanghai and Shenzhen stock markets to conduct insider trading. Zexi Investment had funds of more than CNY30 billion during its peak.
"As the founder of Zexi Investment, one of China's most successful hedge funds, Xu had consistently produced returns that were truly unbelievable: His worst-performing fund had grown by nearly 800 percent in five years. He had also survived countless corruption investigations, markets falls, purges and other scares. Yet even as his legend grew, Xu remained intensely secretive. He had amassed a fortune by trading on knowledge and information no one else had, rumors no one else knew..." said a New York Times report, released on March 29.