China investigates stock regulator
September 17, 2015
China's main anti-graft agency has placed Zhang Yujun (pictured above), the deputy chairman of the China Securities Regulatory Commission (CSRC), under investigation for "severe violations of discipline," according to the Communist Party's Central Commission for Discipline Inspection (CCDI).
The one-sentence statement was released late Wednesday and offered no further details regarding the assistant of China's top securities regulator, though the phrase is typically used in corruption cases.
The move is in line with President Xi Jinping's anti-corruption campaign, which has witnessed several high-profile officials arrested and convicted for illicit activities, including former security chief Zhou Yongkang and former presidential aide Ling Jihua.
Since June, China's volatile stock markets have witnessed significant downturns, with the CSI300 and Shanghai Composite Index dropping more than 8 percent on July 27.
Zhang's arrest as deputy head of the government body charged with stabilizing the stock markets rippled in Chinese markets on Thursday, with the benchmark Shanghai Composite Index down 2.10 percent at Thursday's close.
Following internal corruption investigations, the Communist Party has the ability to discipline members or expel them from the party. In the latter case, offenders are able to be tried in a court and sentenced.
In a separate statement, the CCDI called on the country's regulatory commission to maintain vigilance.
ls/jil (AP, AFP, Reuters, dpa)