Wealth Management

China's former top securities regulator under investigation

China's Regulatory Commission Chiefs/Bloomberg

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Several financial regulators have been brought down in the past few years as President Xi Jinping’s administration kept up a crackdown on corruption.

Monday 20, May 2019

(Bloomberg) – Chinese authorities said that Liu Shiyu, the former head of China’s securities regulator is under investigation for suspected law violations and has turned himself in.

In a statement from China’s Central Commission for Discipline Inspection, Liu who remains a senior Communist Party official is cooperating with the probe and was the chairman of the China Securities Regulatory Commission for three years before being replaced in January by Yi Huiman.

Last year, Yao Gang, the former vice chairman of the CSRC, was sentenced to 18 years in jail for taking bribes and insider trading. Xiang Junbo, the ex-chairman of China’s insurance regulator, was found to have taken bribes of CNY 19.4 million ($2.8 million). He pleaded guilty last year.

Early in his tenure at the CSRC, Liu vowed to take on the crocodiles and barbarians of the market, presaging a clampdown on market manipulation. Under his watch, the regulator stepped up enforcement, sharply increasing the amount of fines it levied.

The CSRC also reduced a backlog of initial public offering (IPO) applications during Liu’s time in charge. However, two high-profile projects, China depositary receipts, which would allow global technology companies to issue shares in the country and the London-Shanghai stock connect a cross-listing programme between China and the UK, failed to materialise while he ran the watchdog.

Liu joined the Agricultural Bank of China, the nation’s third-largest lender, in 2014. He had previously been a deputy governor at the People’s Bank of China (PBOC). Before the PBOC, Liu worked at China Construction Bank Corporation and the nation’s economic reform commission.

Seven of the lenders based in the province had gone public during Liu’s tenure at the CSRC.

TAGS : Central Commission for Discipline Inspection, China Securities Regulatory Commission, Agricultural Bank of China, China Construction Bank Corporation, PBOC, Communist Party official, President Xi Jinping

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