The former vice chairman of China’s securities regulator has been found guilty of corruption after nearly two years of investigation by the country’s top anti-corruption watchdog.
China’s anti-corruption body, the Central Commission for Discipline Inspection (CCDI) found the chairman, Yao Gang, had “violated party discipline”. He was also found guilty of “abusing his power to seek benefits and accepted huge amounts of money,” according to a statement posted to the commission’s website.
Mr Yao joined the China Securities Regulatory Commission (CSRC) in 1992 and founded the body’s futures department. He became vice chairman in 2008 and was responsible for approving applications for initial public offerings before overseeing bonds and futures. He earned the nicknamed “King of IPOs” for how he was able to rapidly shepherd through IPO applications.
But the rising star found himself detained 2015 after a sudden crash in the Chinese stock market. A later investigation found the stock plunge was in part caused by financial speculation and short sellers. That same year, Mr Yao’s former secretary, was found guilty of insider trading.
China’s regulators have been cracking down on the country’s fast-growing financial sector this year. They have detained numerous high-ranking financial officials, including the former top banking regulator Xiang Junbo. The country’s most acquisitive conglomerates have also come under scrutiny for their overseas investments, with the chairman of insurance company Anbang detained in June.
Get alerts on China when a new story is published