Two years into retirement, Fang Xinghai, former member of the Chinese Communist Party’s Securities Regulatory Commission and vice chairman, has come under investigation. Experts believe that in the corrupt world of the CCP officials, Fang Xinghai, a “sea turtle” financial official, may have been involved in corrupt practices. However, the fundamental reason for the investigation is believed to be his disagreement with Xi Jinping’s leadership ideology or expressing grievances privately, seen as a sign of political disloyalty. Following Fang Xinghai’s case, more overseas-educated officials may become targets in the future.
Fang Xinghai, former vice chairman of the Chinese Communist Party’s Securities Regulatory Commission, was investigated on July 24, 2026.
Fang Xinghai was known as a key advocate for “quantitative trading” and “short selling mechanisms.” Media reports state that on June 17, during the 2026 Lujiazui Forum, Fang Xinghai praised the growth of quantitative investment institutions in mainland China and suggested that Hong Kong’s financial regulatory authorities attract mainland quantitative institutions to expand in Hong Kong.
Born in May 1964 in Leqing, Zhejiang, Fang Xinghai graduated from Tsinghua University in 1986 and pursued further studies at the University of Pittsburgh in the United States. A year later, he transferred to Stanford University to pursue a Ph.D. in Economics. In 1993, Fang Xinghai completed his Ph.D. and worked at the World Bank. In August 1998, invited by the then President of the Construction Bank, Zhou Xiaochuan, he returned to China to serve as the Director of the Office of the China Construction Bank Coordinating Committee. He later held positions such as Secretary-General of Galaxy Securities Management Committee, Assistant General Manager and Deputy General Manager of the Shanghai Stock Exchange, as well as Deputy Director and Director of the Shanghai Financial Services Office.
Hong Kong media revealed that during the 2013 CCP session, Fang Xinghai, then Director of the Shanghai Financial Office, submitted a letter to Xi Jinping expressing his willingness to contribute to the development of the national financial industry. Shortly after, Fang Xinghai was reassigned to the Office of the Central Finance and Economics Leading Group and became the Director of the International Economics Bureau (Bureau Four) in 2014.
In 2015, amidst the Chinese stock market crash, Fang Xinghai took over from the retiring Liu Xinhua and became the vice chairman of the Securities Regulatory Commission, overseeing international business. From October 2015 to July 2024, he mainly oversaw tasks related to the opening up of capital markets, international cooperation, and accounting audits. He reached the retirement age in 2024 and in 2025 was appointed as the vice president of the China Finance Association.
Fang Xinghai has a connection to former Premier Zhu Rongji. When studying at Tsinghua University, he attended lectures by Zhu Rongji during his tenure as the head of the National Economic Commission. Fang Xinghai recalled that he returned to China because in 1997, Zhu Rongji, while meeting with foreign guests, expressed disappointment, saying, “Why haven’t my students returned?”
Chinese affairs expert and overseas political commentator Chen Pokong told Epoch Times that although Fang Xinghai was once an old subordinate of Xi Jinping and received his favor, especially after the stock market incident, Xi’s use of him was merely due to a lack of other options. However, being an overseas-educated official, over time it became evident that their ideological differences were significant.
He believes that Fang Xinghai’s most significant background is his overseas education and his mentorship under Zhu Rongji, which influenced his thinking. Zhu Rongji was considered a reformist within the CCP, and at his core, Fang Xinghai also belongs to the reformists’ faction.
A video of Fang Xinghai speaking at the 2019 World Economic Forum in Davos recently went viral online. In the video, he participated in a panel discussion and mentioned that Western democracy has encountered “significant issues” and requires “political reform,” causing laughter among the audience.
Chen Pokong stated that as long as CCP officials hold their positions, they must make political statements. Regardless of being reformists or anti-reformists, their political speeches convey the same meaning. However, internally, there can be significant distinctions between reformists and those from the Cultural Revolution era, with Fang Xinghai being viewed as a reformist internally, while his public statements are less crucial.
Fang Xinghai is the second former vice chairman of the CCP’s Securities Regulatory Commission to fall from grace within the last 15 months. In April 2025, former vice chairman Wang Jianjun was investigated, and former chairman Yi Huiman was investigated in September of the previous year. Fang Xinghai and Yi Huiman worked together at the Securities Regulatory Commission for five years and shared a hometown in Wenzhou.
Currently, there are suspicions that Fang Xinghai’s case is related to several financial quantitative firms.
An account on platform X, “Asian Finance,” alleged that Fang Xinghai’s arrest was expected. Fang Xinghai is implicated in at least three major cases: firstly, during Yi Huiman’s tenure, over 1900 new A-share listings occurred with astonishing profit transactions, with Fang Xinghai as Yi Huiman’s deputy and fellow Wenzhou native; secondly, in the financial circles, Jia Shi Fund Chairman Zhao Xuejun has reportedly implicated Fang Xinghai; thirdly, Fang Xinghai has close connections with several quantitative institutions. Where did the money, sheared by Hedge Fund Phantom Quantitative’s co-founder Liang Wenfeng, ultimately flow to? The former market director of Phantom Quantitative, Li Cheng, has been arrested.
Chen Pokong suggests that given the recent scandals involving high-ranking officials at the CCP’s Securities Regulatory Commission, corruption seems to be rampant among almost all officials in the CCP apparatus, making it likely that Fang Xinghai could not avoid becoming ensnared. However, being an overseas-educated official, the ultimate reason for his purging is still likely to be political, and the specific charges exposed in the end may include political corruption, disloyalty, or dishonesty – all possible labels.
He speculated that Fang Xinghai’s downfall may have been due to expressing grievances privately or holding conflicting views with higher-ups, which incurred Xi Jinping’s displeasure.
The Wall Street Journal reported yesterday (24th) citing sources familiar with the matter that over the past few years, Fang Xinghai had attempted to leave China and take up a senior position at the World Bank in Washington, but his application was rejected by the Organization Department of the CCP. Before and after his rejection, Fang Xinghai was asked to submit a detailed report on his professional career, a process sometimes used for officials under suspicion.
Chen Pokong stated that currently, Xi Jinping is suspicious of all overseas-educated personnel, not only refraining from utilizing them but also actively removing them. Starting with Fang Xinghai’s downfall, it is likely that more high-ranking overseas-educated officials will be purged in the future due to political reasons. “The Xi Jinping regime has declared an end to the reform era, entering the so-called Xi ‘new era,’ which will further exclude overseas-educated officials, potentially even purging them, as the political power sharply shifts to the left.”
Independent commentator Cai Shunkun expressed on platform X that overseas-educated Fang Xinghai becoming a victim of political purges is a harsh blow, particularly for those new darlings in the tech world who had arrogantly chosen to return. While Zhou Xiaochuan had a high regard for overseas-educated officials back then, the times have changed, and whether old or new overseas-educated individuals, they are all subjects of suspicion and caution politically. Fang Xinghai could have stayed in the U.S. peacefully in his later years instead of losing his personal freedom.