The People's Procuratorate of Changchun is deliberating whether to charge Wang Xiujie, a self-styled stock market prophet and internet celebrity, for conducting illegal business operations involving more than 13 million yuan.
Procuratorate sources in the capital of northeast China's Jilin Province said police had handed over files and evidence concerning Wang's case and will decide in the coming week whether or not to take Wang, who has been detained by police since early July, to court.
Wang Xiujie, or "Daitou Dage 777", was so famous in China that his blog on stock market investments received more than 30 million hits, as people rushed to cash in on the bull market.
Daitou Dage, Chinese for "senior big brother", was a heroic ancient swordsman in a classic Chinese kung fu novel.
Wang started to share his experience of the stock market in February and claimed more than 90 percent of his share predictions were correct, calling himself the "patron saint" of individual investors.
Many people -- the exact number is still unknown -- allegedly paid him for market tips and advice.
Wang, a native of Changchun, capital of Jilin, said on his blog that he was born in 1972, and worked in a securities company in Shanghai from 1992.
With more than 30 million hits, Wang's blog took over the title of "number one blog in China" at the expense of famous actress Xu Jinglei. The last article on Wang's blog was published on July 1.
Those who trusted him and paid for tips were planning to seek compensation from Wang.
Chinese law prohibits the provision of securities consultancy services without approval by the China Securities Regulatory Commission.
China's stock markets experienced a spectacular bull run in the first half of 2007, when up to 300,000 new A share accounts were opened daily. However, it slowed in the wake of a series of government measures last month amid fears of overheating.