Nanchang Intermediate People's Court in eastern province of Jiangxi convicted the provincial Land Development and Rehabilitation Center's deputy director Wan Jianming of embezzling public funds and taking bribes. Wan led to a national loss of 34.4 million yuan.

The court also deprived off his political rights and handed over a confiscation of 400, 000 yuan.

He had received more than 30 million worth of loans from banks by claiming his center's funds as his mortgage funds since 2002-05 on the back of China's volatile stock market that grips investors including students, monks and cleaners.

All of the funds evaporated.

There was no immediate word on whether Wang would appeal against the first-instance ruling or not.

Also on Thursday, China shares ended mixed with the benchmark Shanghai Composite Index shedding 17.12 points to close 0.4 percent lower at 3,912.94 and the Shenzhen Composite Index gaining 2.48 points to rise 0.2 percent to 1,082.43.