Former top Chinese politician Bo Xilai has admitted he was "too careless" with public money.
Mr Bo denied the embezzlement charge, telling a Jinan court that his wife had taken the money and he knew nothing about it at the time.
He admitted "some responsibility" for not doing enough to return the money later. "I feel ashamed," he said.
Mr Bo also mocked a former colleague who had accused him of being actively involved in embezzling the funds.
He said Wang Zhenggang's testimony was "illogical", and that only a fool would discuss bribery in front of witnesses.
"Start Quote
End QuoteThe information emerging from the Jinan court is extraordinary in its detail - the kind of detail Chinese people are usually denied "
The scandals involving Mr Bo's family, which used to be one of the most elite in China, have captivated the country.
Mr Bo, who rose to become the Communist Party chief in Chongqing, denies bribery and corruption - and also the charge of abuse of office, which the court has not yet examined.
He is accused of using his position to cover up for his wife Gu Kailai, who has been convicted of murdering a British businessman.
Mr Bo's ex-police chief Wang Lijun, his close colleague in Chongqing, is also testifying against him.
Many analysts assume the outcome of the trial, now in its third day, has been predetermined - with a guilty verdict.
But Mr Bo has given what, for China, is an unusually vigorous defence, observers say.
They say the court hearing is as much about getting rid of a popular politician as it is about criminal wrongdoing.
Foreign media are not allowed into the trial, but the court in the eastern city of Jinan has been posting regular updates on China's micro-blogging site Weibo (in Mandarin).
Witness mocked"I feel I should take some responsibility for the money ending up in [Mr Bo's wife] Gu Kailai's account. I feel ashamed," Mr Bo told the court.
"I failed to retrieve the money later, and that's a factual statement, but can you say I had the intention to embezzle the money? No."
He was referring to a 5m yuan ($800,000; £524,000) sum of money in his wife's account, which had alleged been earmarked for a Dalian city construction project.
Earlier in Saturday's proceedings, Wang Zhenggang, former urban planning director of Dalian, gave testimony against Mr Bo, who used to be Dalian's mayor and therefore Mr Wang's boss.
Mr Wang said he saw Mr Bo make a call to his wife and explicitly said he was going to funnel money to the family.
Mr Bo refuted the testimony, saying he had no need for the money as his wife was a successful lawyer and his son's study in the UK was funded through a full scholarship.
He also mocked Mr Wang's testimony, saying: "Is this in line with the way an embezzler would think?... Would I say something this sensitive on the phone?''
"It is not even what the most stupid corruption offender would do," he said.
'Insane' wifeOn Friday, Mr Bo described his wife, Gu Kailai, as "insane" because of her testimony implicating him in corruption.
She had said that wealthy Chinese entrepreneur Xu Ming bought gifts for the family in order to gain favours.
Gu Kailai also said she felt that British businessman Neil Heywood - whom she has been found guilty of killing - had posed a threat to her son, Bo Guagua.
But Mr Bo dismissed her testimony, reportedly saying: "In her unstable mental state, prosecutors put pressure on her so she would turn on me."
Mr Bo's downfall was seen as the biggest political shake-up to hit China's ruling elite in decades.
In February 2012 his police chief, Wang Lijun, fled to the US consulate in Chengdu amid an apparent fall-out with Mr Bo.
Shortly afterwards, Chinese authorities announced that they were reinvestigating the death of Mr Heywood, who died in a Chongqing hotel in November 2011.
The release of trial proceedings during Mr Bo's hearing are in sharp contrast with Gu's trial in August 2012. That hearing took just one day and few details were released.
The Chinese authorities are on high alert for any unrest that might be triggered by Mr Bo's trial - with police closely guarding a security perimeter that spans several miles around the court.
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Neil Heywood
Bo Xilai
Gu Kailai
Bo Guagua
Wang Lijun
Patrick Devillers
Jiang Feng Dolby
Dalian
Chongqing
French villa
Bo Xilai
Former Communist Party chief of Chongqing and Politburo member
Mr Bo, the son of a famous Communist Party hero, was once a political high-flyer and described as the nearest China had to a Western-style politician. He ran the coastal city of Dalian and was commerce minister before becoming Party chief of south-western metropolis of Chongqing. He was removed from office following Neil Heywood's death and was charged with bribery, corruption and abuse of power.
Gu Kailai
Lawyer and wife of Bo Xilai
Ms Gu, whose father was a prominent revolutionary general, is a well-known lawyer and second wife of Bo Xilai.
She studied at Peking University before opening the Kailai law firm in Beijing. Fluent in English, she and her husband were once one of China's most powerful couples. Last year, she was convicted of Mr Heywood's murder, reportedly over a deal gone wrong, and given a suspended death sentence.
Bo Guagua
Son of Bo Xilai and Gu Kailai
Educated at the exclusive British private school Harrow, followed by Oxford and Harvard Universities, Bo Guagua has been described as one of China's "princelings" - the descendants of revolutionary leaders often criticised for their lavish lifestyles. Since his parents' fall, Bo Guagua has remained in the US, where he is preparing to study law at Colombia University in New York. In a statement issued ahead of Mr Bo's trial, Bo Guagua said he hoped his father would be allowed to defend himself "without constraints".
Wang Lijun
Former Chongqing police chief
Mr Wang, once a popular police chief and Bo Xilai's deputy in Chongqing, began his career in law enforcement in the Inner Mongolia region before moving to Chongqing in 2008. He worked closely with Mr Bo but, after an apparent falling out, Mr Wang fled to the US consulate in Chengdu, near Chongqing, where he raised concerns about the circumstances of Neil Heywood's death. Mr Wang has since been jailed for 15 years, charged with defection, power abuse and bribe-taking.
Patrick Devillers
French architect
Mr Devillers is believed to have met Bo Xilai and Gu Kailai in the 1990s while living in Dalian and reportedly helped design street grids in the port city while Mr Bo was mayor. French documents quoted by the Wall Street Journal and New York Times said he also oversaw the running of a villa in the South of France - allegedly belonging to Mr Bo - between 2001 to 2007. He was detained in Cambodia, where he lives, before voluntarily flying to China in July 2012. Reports say Chinese authorities wanted to talk to him as a witness in the Neil Heywood case.
Jiang Feng Dolby
Television presenter and business woman
Mrs Dolby, born in China but now a British citizen through marriage, is well known in China as a state TV presenter. However, after moving to Britain she ran an educational consulting company, which it is claimed helped get the children of wealthy Chinese couples into leading British and American schools and universities. Mrs Dolby was named in official documents quoted by the Wall Street Journal as the manager of a villa in the south of France that is expected to be one of the key pieces of evidence at Mr Bo's trial.
Dalian
Major seaport in north-eastern China
It was here that Bo Xilai's political career was set on the fast track when he was appointed mayor. Mr Bo was credited with developing Dalian from an unremarkable port city to a showcase for China's economic boom. It was also in Dalian that Mr Bo and Gu Kailai reportedly first met Mr Heywood and Mr Devillers.
Chongqing
Major city in south-western China
Bo Xilai was appointed Communist Party chief of Chongqing in 2007. Wang Lijun, the city's former police chief, was his deputy. Mr Bo became well-known for a high-profile crackdown on crime and advancing the "Chongqing model" of development, which spent heavily on developing public housing and infrastructure. However, his ambition and flamboyant style earned him enemies and raised eyebrows among party leaders back in Beijing. It was in a hotel room in Chongqing that British businessman Neil Heywood was found dead in November 2011.
French villa
Cannes, France
A six-bedroom villa in the south of France is expected to play a role in the trial of Bo Xilai. The $3.5m (£2.2m) property in Cannes was allegedly given to Mr Bo as a bribe. It it claimed to have been bought by Xu Ming, a billionaire backer of Mr Bo in Dalian. French documents quoted by the Wall Street Journal and the New York Times state people close to the Bo family have been involved with the villa since 2001. French architect Patrick Devillers, British businessman Neil Heywood and Feng Jiang Dolby, a former presenter on China's state TV, have all overseen the running of the property, the papers said.
Neil Heywood
British businessman
Having enjoyed a privileged education at Harrow school, Mr Heywood moved to China in the early 1990s where he learned Mandarin, married his Chinese wife Wang Lulu and started a business career. The father-of-two worked as a consultant to foreign businesses seeking investment in China. It was while living in the north-eastern port city of Dalian in the mid-1990s that Mr Heywood met Bo Xilai - then the city's mayor - and his wife Gu Kailai. More than a decade later, Mr Heywood was found dead in a hotel room in the south-western city Chongqing - where Mr Bo had since become Communist Party chief. In 2012, Gu Kailai and an aide were convicted of poisoning him because of "economic conflict".
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