China Arrests IPO ‘Big Sister’ From CSRC on Bribery Charges

(Bloomberg) -- China’s top prosecutor arrested Zeng Changhong, a former official at the China Securities Regulatory Commission’s investor protection bureau, on suspicion of taking bribes.

Zeng, who had been in charge of approving initial public offerings, is accused of having used her position for personal financial gain, the prosecutor said in a statement. She was placed under investigation in October 2021, and formally expelled from the Communist Party on April 1 for having improperly accepted gifts and shares of companies seeking listings, according to a statement from the Central Commission for Disciplinary Inspection. 

“Zeng Changhong seriously violated the party’s political discipline,” the CCDI said. “The sums of the suspected crimes are particularly huge, the nature is serious, and the impact is severe, and should be dealt with seriously.”

The veteran official, who worked at the securities regulator for more than two decades until 2019 and was known as IPO ‘Big Sister,’ was also criticized for using her influence to seek illegitimate benefits for others in refinancing reviews and corporate listings, according to the anti-graft body.

Xi Jinping has staked his administration’s authority on stamping out corruption, which had long plagued powerful party officials, with sweeping probes that have ensnared more than a million people. The country passed a law last August to streamline powers for disciplinary bodies in anti-corruption investigations, and Xi vowed in January that there would be no let up in the “still raging” fight against corruption. Recent high-profile targets include the arrest of Fu Zhenghua, China’s former justice minister, announced on Thursday.

Last October, Beijing launched an anti-graft investigation focused specifically on 25 financial institutions and regulators, seeking to rein in risks from the $60 trillion sector while battling an economic slowdown. More than two dozen senior officials have since faced probes or penalties, including Cai Esheng, former vice chairman at China’s banking watchdog. In February, the anti-graft body issued a rare rebuke of financial regulators and institutions after its inspection, naming corruption around key positions as a prominent issue at some agencies.

Story Link: China Arrests Ex-CSRC Official Zeng on Bribery Charges

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