The prosecution alleged that Q, as general manager of a state-owned property company, together with the finance and development managers, concealed three land parcels during the company’s restructuring and misappropriated state assets of RMB 543.9 million, RMB 871.5 million and RMB 190.5 million respectively — RMB 161 million attributable to Q.

Issues

Whether the parcels were state assets at the relevant time; whether the valuation adopted by the prosecution reflected their status; and whether Q possessed the requisite intent.

Outcome

Li Xiaohua acted for Q. The defence challenged the asset valuation and the characterisation of the land during restructuring. The court accepted that RMB 130 million of the alleged sum was not established as embezzled state assets.