The central government has scaled back its investigation into the scandal involving Shanghai tycoon Chau Ching-ngai and former Bank of China (Hong Kong) chief executive Liu Jinbao.
The number of investigators sent to Shanghai had been reduced to a few dozen from several hundred early last month, informed mainland sources said yesterday.
It also emerged that Executive Vice-Premier Huang Ju, former party boss of Shanghai, has been put in charge of the case.
It had earlier been speculated that the mainland's top anti-corruption official, Wu Guanzheng, would head the probe.
An investigation led by Mr Wu, the chairman of the Commission for Discipline Inspection, the Communist Party's anti-graft body, would have meant a much wider investigation into corruption among government officials. The involvement of Mr Huang, who has a financial portfolio, suggests the investigation will instead focus on alleged financial crimes involving Mr Chau, Mr Liu and several other property tycoons in Shanghai.
Observers say the moves are aimed at giving a lower profile to the case, which has sparked intense speculation regarding factional infighting. Some believe President Hu Jintao and Premier Wen Jiabao have used the implication of people linked to former president Jiang Zemin and the so-called Shanghai faction to solidify their own grasp on power. Others, however, reject this suggestion.