Chinese authorities arrest top fund manager for insider trading, shoots his partner for resisting

China’s Xu Xiang, who heads Shanghai-based Zexi Investment, has been likened both to Warren Buffet and Carl Icahn, given his reputation as an excellent profit-maker in the Chinese equity fund market. According to Want China Times, “The fund is reported to currently manage more than 10 billion yuan (US$1.6 billion).”

In addition to this, Zexi also made headlines around the world after Bloomberg reported that four of its funds were among the top performing hedge funds in China from June to August 2015, despite the crash in the country’s stock market.

Unfortunately, however, Xu and several of his colleagues are now embroiled in a financial scandal that could possibly turn his and his company’s achievements to naught. China’s Ministry of Public Security just announced this week that Xu is under investigation for suspected insider trading. Allegedly, he obtained inside stock information illegally and manipulated stock prices.

Yet, what’s even more shocking than Xu’s sudden downward spiral is what happened to one of his partners, Wu Shuang. The insider trading suspect, after allegedly resisting and trying to escape, was shot on the spot by the Chinese police.

Adding drama to the already dramatic financial scandal is the fact that a mere few moments after Wu Shuang’s resistance and subsequent shooting surfaced, news about it was promptly taken down online.

What just happened? Will Xu Xiang be locked up indefinitely? Did Wu Shuang survive?

Well, only Chinese authorities can tell.

Source:

ZeroHedge.com