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Tuesday, August 26, 2014, 12:47

Top 10 newsmakers who rocked China's stock market

No 9 Chen Fashu

Chen Fashu, chairman of Xinhuadu Group, signed a contract on Sept 10, 2009, to buy 65.81 million shares of Yunnan Baiyao Group Co Ltd, at a price of 2.2 billion yuan. Yunnan Baiyao is a Shenzhen-listed traditional Chinese medicine maker.

Chen paid up 2.2 billion yuan to Hongta Tobacco(group)Co Ltd, the original owner of these shares, within five days after signing the contract, a deal that needed authority's approval. However, by December 2011, Chen did not get the shares he had paid for and that had appreciated a lot in value. He then sued Hongta Tobacco.

Hongta Tobacco's supervising company China National Tobacco Corporation rejected the contract on Jan 17, 2012, claiming it was avoiding loss of State-owned assets. After losing the lawsuit in Feb 28, 2012, Chen appealed in February 2013.

The lawsuit drew wide attention from media and legal sectors.

Top 10 newsmakers who rocked China's stock market
Chen Fashu, chairman of Xinhuadu Group in Beijing, on April 15, 2010. (Photo / IC)

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