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China’s financial sector told to expect new wave of graft scrutiny

Xiang Junbo, former chairman of the China Insurance Regulatory Commission (CIRC)

Lintao Zhang | Getty Images

Xiang Junbo, former chairman of the China Insurance Regulatory Commission (CIRC)

Graft-busters are expected to once again set their sights on the financial sector after several senior industry figures came under investigation, according to state media.

The warning came after Yang Jiacai, assistant chairman of the China Banking Regulatory Commission (CBRC), was reportedly placed under investigation in relation to a loan scandal in Hubei province.

Without confirming the investigation, a commentary posted on Sunday on the social media account of People’s Daily, the Communist Party mouthpiece, said Yang’s “disappearance” was a sign the corruption crackdown in the financial sector had entered a “deep water zone” – a euphemism for a crucial and difficult period.

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Mainland news portal Caixin reported on Saturday Yang was placed under investigation on April 9 over his possible connection to the scandal. Yang had been relieved of his duties, according to the report.

A number of senior officials in charge of financial affairs have recently fallen under suspicion for graft, including Xiang Junbo, head of the China Insurance Regulatory Commission, and Li Changjun, former president of the Beijing branch of the Export-Import Bank of China.

“The anti-corruption campaign in the financial sector is taking shape, just like the wind sweeping through the building heralds a rising storm in the mountain,” the commentary said.

Since Guo Shuqing took over the CBRC in March, it has reviewed nearly all the documents it issued that deal with regulation, according to the People’s Daily.

Finance

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