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Shanghai Property Mogul Stands Trial
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The trial of real estate tycoon Zhou Zhengyi, also known as Chau Ching-ngai, has begun in Shanghai, according to a brief notice Thursday in the China Securities Journal. Zhou is accused of falsifying figures for registered investments and manipulating stock prices.

Zhou's wife and business partner, Mo Yuk-ping, is under investigation by Hong Kong's anti-graft agency, the Independent Commission Against Corruption.

The case against Zhou, one of China's wealthiest businessmen, also tarnished a branch of the Bank of China. Its Hong Kong unit, BOC Hong Kong, vowed to improve its lending practices after questions were raised about a HK$1.8 billion (US$226.9 million) loan to a company owned by Zhou.

The BOC recalled the chief executive of the Hong Kong branch, Liu Jinbao, to Beijing and then dismissed him.

Zhou, a Shanghai native, made his millions running restaurants and retail outlets before moving into property development. In 2002, Forbes magazine rated him China's 11th-richest man, with a fortune estimated at US$320 million.

He is also being sued in civil court by 2,000 residents of a Shanghai neighborhood who say he failed to compensate them adequately for demolishing their homes as part of a redevelopment project.

(Shenzhen Daily May 21, 2004)

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