Chinese Officials Confirm Re-Arrest of Shanghai Tycoon – James Areddy

From The Wall Street Journal:

Chinese officials confirmed that they have re-arrested a Shanghai tycoon first jailed in 2003, making him the latest prominent figure in China’s commercial capital to fall amid a corruption probe involving the city’s pension system.

Zhou Zhengyi, once one of China’s wealthiest people, was arrested in November “to investigate some problems of his,” a spokesman for the Shanghai government said Friday. The spokesman, who declined to be named, was confirming a report from the official Xinhua news agency, although the Xinhua report said Mr. Zhou has been “in custody” since October.

The spokesman wouldn’t elaborate on Mr. Zhou’s case, and it isn’t clear if it is related to the broader scandal now afflicting Shanghai. But his arrest came soon after the city’s top official, Shanghai Party Secretary Chen Liangyu, was dismissed for alleged corruption in an investigation into misuse of the city’s $1.2 billion pension fund.[Full Text]

December 8, 2006 9:08 PM
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Categories: Economy