Magazine

Table: Li's Ordeal: A Blow-by-Blow


SEPTEMBER, 1994

Li Yonghui starts Kaiyuan Group, selling trucks on installment to poor farmers.

SEPTEMBER, 1998

Kaiyuan hits annual profits of $3 million on revenues of $36 million.

NOVEMBER

Shijiazhuang International Building approaches Kaiyuan about asset swap. Li signs deal.

DECEMBER

After Li Yonghui discovers irregularities in International Building's management, including dud loans to the parent company, he launches efforts to become the primary shareholder.

MAY, 1999

Li Yonghui taken into custody at the Shenzhen bourse.

AUGUST

100 days later, Li Yonghui released after agreeing to buy back International Building's share of Kaiyuan for more than $700,000 above the original price.

JULY, 2000

Beijing launches corruption probe into Shijiazhuang Mayor Zhang Erchen and Deputy Governor Cong Fukui.

NOVEMBER

Li Yonghui renews his battle against International Building, calling for the first of what will be more than 130 board meetings to discuss internal irregularities.

DECEMBER

Deputy Governor Cong and Mayor Zhang are expelled from the Standing Committee of the National People's Congress.

MARCH, 2001

Kaiyuan petitions the China Securities Regulatory Commission to investigate International Building's financial irregularities.

MAY

Deputy Governor Cong stripped of post and put on trial for corruption.

JUNE/JULY

Kaiyuan sues the CSRC for dereliction of duty in the Beijing People's Court. It declines to make a ruling despite laws supposedly forcing it to accept or deny cases within seven days.

SEPTEMBER

Kaiyuan and over 40 other shareholders sue International Building for negligence.


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