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Former China securities regulator under investigation
SHANGHAI, May 20, 2019 (BSS/AFP) – China’s former top securities regulator
— appointed to clean up markets following a 2015 market meltdown — is under
investigation for unspecified wrongdoing, authorities said late Sunday.
Liu Shiyu was suspected of “violating the law”, said a brief notice on the
website of the Communist Party agency responsible for policing corruption.
He had turned himself in, the notice said, but gave no further
information.
A former banker and deputy governor with the central bank, Liu was
installed as head of the China Securities Regulatory Commission (CSRC) in
early 2016, with a mission to restore confidence in financial markets.
The previous year, China’s traditionally volatile markets slumped
precipitously in a disastrous meltdown worsened by an erratic response from
regulators.
Liu declared war on financial “crocodiles” and “barbarians” who manipulate
the market.
He launched a crackdown that saw dramatically enhanced enforcement of
securities regulations and sharply increased the amount of fines levied.
He was replaced in January by Yi Huiman, former chairman of the giant
Industrial and Commercial Bank of China.
Liu is not the first financial regulator felled in a crackdown on
corruption by President Xi Jinping’s government.
Yao Gang, the former vice chairman of the CSRC, was last year sentenced to
18 years in jail for taking bribes and insider trading.
Xiang Junbo, China’s former insurance regulator, also pleaded guilty to
taking bribes last year.
BSS/AFP/RY/10:35 hrs