Trial against Hongta starts in Yunnan

The Supreme Court of Yunnan Province began hearing a lawsuit Thursday filed by Chen Fashu, the CEO of Newhuadu Industrial Group, against Yunnan Hongta Group, a State-owned tobacco company.

Chen is suing to obtain a 2.2 billion ($346 million) equity stake in Yunnan Baiyao Group, an investment management company and a subsidiary of Yunnan Hongta.

Yunnan Baiyao announced on September 12, 2009, that Yunnan Hongta had sold all of its shares in Yunnan Baiyao to Chen, making him its second largest shareholder. The deal was delayed after Hongta's parent, China National Tobacco Corp, failed to approve the sale.