Local prosecutors insisted, in court, that Chao should be returned to custody, since he had never confessed and was suspected of trying to exile overseas. Chao may act in collusion with other suspects if he stays out on bail, they said.

But the judge rejected the prosecutors' request and allowed Chao to continue his bailment with an added recognizance.

A group of people were gathering outside the court, demanding for putting Chao back into custody.

On May 25, Chao was put into custody by the court for involving in an insider trading of shares of the Taiwan Trust and Development Corp, and on July 10, local prosecutors indicted Chao on charges of insider trading, demanding an eight-year imprisonment for him.

When the local court received the case and it granted a bailment to Chao with a recognizance of 10 million NT Dollars, but local prosecutors protested the court decision, fearing that Chao may act in collusion with other suspects and go into exile overseas.

On July 17, Taiwan's higher court canceled the local court's first decision and ordered it to make a second one.

According to local media reports, Chao bought a flight ticket to Japan, when local prosecutors began investigating the case.