China’s anti-corruption unit detains provincial market regulator as stock gauge slumps
- Chief of CSRC branch in Jiangsu province faces anti-corruption investigation, the Central Commission for Discipline Inspection confirms
The chief of a branch of China’s securities regulator, was detained by the Communist Party’s anti-graft body for alleged serious violations of discipline and laws, amid disgruntled equity investors’ uproar over a slumping market.
Beijing-based financial media outlet Caixin said that Ling was apprehended on Monday morning and that his detention might be linked to an entrepreneur based in Yixing, in East China’s Jiangsu province, who is currently under investigation.
The downfall of Ling, a veteran regulatory official, reflects Beijing’s stepped-up effort to clean up the securities sector. A CCDI disciplinary inspection team is conducting a three-month probe into the China Securities Regulatory Commission (CSRC) and its branches across the country, which is expected to end in July.
“A crackdown on corrupt officials will be interpreted as a move to regulate the stock market and safeguard investors’ interest,” said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. “The central government still needs to bolster institutional and individual investors’ confidence in the economy and listed companies.”
