Chinese film star Liu Xiaoqing, facing possible charges of tax evasion, has been released on bail.

Prosecutors have instituted proceedings against the culture and art company set up by Liu Xiaoqing. An investigation found out that since 1996 her company has evaded taxes worth over 10 million yuan (US$1.2 million).

The official Xinhua says Liu Xiaoqing was bailed out on Saturday after showing signs of repentance and willingness to pay the evaded tax.

52-year-old Liu Xiaoqing was arrested in June last year and detained in Beijing. Her case has been in the media spotlight in China over the last year.

(People's Daily August 18, 2003)