Fang Xinghai, a former vice chairman of the China Securities Regulatory Commission, is being investigated for discipline violations. The probe, announced by the country's top anti-corruption watchdog, adds another high-ranking financial regulator to the list of officials caught in Beijing's ongoing crackdown on corruption within the party and government.
The investigation
The Central Commission for Discipline Inspection confirmed the investigation Thursday but released few details about the specific allegations against Fang. The former CSRC vice chairman is accused of violating party discipline, a broad charge that can encompass everything from bribery to abuse of power to failure to report assets.
Fang stepped down from his post at the CSRC in 2022 after serving more than five years as one of the commission's top officials. He oversaw market regulation and international cooperation during a period when Beijing was tightening control over stock and bond markets.
Part of a broader anti-corruption push
Fang's case is the latest in a string of investigations targeting senior figures in China's financial regulatory apparatus. President Xi Jinping's administration has made anti-corruption a central pillar of its governance, with repeated pledges to root out misconduct in state-owned enterprises, banks, and regulatory bodies.
The probe comes just months after the party's anti-graft agency launched an investigation into another former CSRC deputy chairman, Wang Zongcheng, who was removed in 2022. That case, which involved allegations of taking bribes and illegal business operations, led to a formal indictment.
The crackdown has also swept up former officials at the People's Bank of China and the China Banking and Insurance Regulatory Commission. Investigators have signaled they are looking at both past and present leaders across the financial sector.
What's at stake
For the CSRC, the investigation threatens to further erode public confidence in a regulator already struggling to restore trust after a series of high-profile market scandals and a prolonged stock-market slump.
Fang's tenure included efforts to open China's capital markets to foreign investors and to tighten rules on initial public offerings. But critics argue the CSRC has been slow to rein in corporate fraud and insider trading. The corruption probe could add to doubts about the agency's independence.
No timeline has been given for the investigation's conclusion. Under party rules, a case like this typically moves through an internal review before any formal charges or disciplinary actions are announced. The results could include expulsion from the party, criminal prosecution, or both.
Fang could not be reached for comment. His whereabouts are unknown.
