Former CSRC Chairman Yi Huiman Faces Corruption Investigation

The former chairman of China’s securities regulatory body, Yi Huiman, is under investigation for alleged corruption, as confirmed by the country’s anti-corruption authorities on September 6, 2023. This development is part of an ongoing effort by Beijing to combat corruption within its ranks, a campaign that has intensified in recent years.

Yi, who previously led the China Securities Regulatory Commission (CSRC), was removed from his position early last year amid significant turmoil in China’s financial markets. The Central Commission for Discipline Inspection and the National Supervisory Commission issued a statement indicating that Yi is “suspected of serious violations of discipline and law.” However, specific details regarding the nature of his alleged misconduct or his current location have not been disclosed.

The investigation into Yi highlights the broader anti-corruption initiative spearheaded by Chinese President Xi Jinping, who has made the crackdown on graft a central focus of his administration since assuming power over a decade ago. Supporters argue that this policy fosters greater transparency and accountability within the government. Critics, however, suggest that it may also be utilized as a tool for political purges, targeting potential rivals within the Communist Party.

The financial sector in China has been particularly affected by this campaign. Yi’s tenure as CSRC chairman began in January 2019, following the dismissal of his predecessor, Liu Shiyu, who was also investigated for similar allegations of disciplinary violations. Before taking the helm at the CSRC, Yi served as the chairman of the Industrial and Commercial Bank of China, one of the largest banking institutions in the world.

The ongoing investigation into Yi underscores the challenges facing China’s regulatory landscape as it grapples with maintaining stability in its financial markets while simultaneously addressing corruption. The outcome of this inquiry may have significant implications for the future direction of China’s financial governance and regulatory practices.