Mou Qizhong, a well-known business tycoon, was freed from Hongshan Prison in Hubei province on Tuesday, according to Mou's lawyer, Xia Zongwei.
Before being charged by the court, Mou was one of the most prominent entrepreneurs in the country. He was "charming" and could get ready credits from banks.
He was even toasted in the World Economic Forum in Switzerland as one of China's most notable businessmen.
It was in 1998 when the government started to call for austerity led by then deputy Prime Minister Zhu Rongji. They started looking into Mou's extravagant lifestyle and saw the real picture of his finances.
Mou was jailed in 2000 for charges of bank fraud. The Wuhan court found Mou of defrauding the Bank of China by getting $75 million. He signed a promissory note and stated that the credit was to pay for computer equipment imported from Australia.
The real reason why Mou borrowed such an amount was to fund satellite investments. His capital did not generate any profit.
It was found out that his debts exceeded his assets by about $40 million. He was initially sentenced to life but was further reduced due to good behavior in prison.
After spending 16 years in jail, Mou is now 75 years old.
His lawyer said, "While serving the sentence, Mou did not give up thinking about development paths for the Chinese economy, including improvements in the Three Gorges Dam area."
While in prison, he occupied himself with making plans for the country's economic development and improving several cultural areas as well.
Xia said, "While reading the newspaper, he made notes. He also learned about the law and public policy in the prison library."