On July 24, the Central Commission for Discipline Inspection and the National Supervisory Commission of the Chinese Communist Party announced that Fang Xinghai, the former Vice Chairman of the China Securities Regulatory Commission, is suspected of “serious violations of discipline and law” and is currently undergoing disciplinary review and supervision investigation.
This investigation is being conducted by the Central Commission for Discipline Inspection of the Chinese Communist Party, an internal agency responsible for disciplinary inspections within the Party. China’s official news agency Xinhua confirmed the news but did not disclose specific details of the case.
In recent years, the Chinese Communist Party has been cracking down on the financial industry, with dozens of banking executives being detained or sentenced.
Fang Xinghai, 62, has had a successful career path. He obtained a Ph.D. in Economics from Stanford University in the United States and worked as an economist and investment officer at the World Bank headquarters in Washington D.C. from 1993 to 1998.
From 2001 to 2005, he served as the Deputy General Manager of the Shanghai Stock Exchange and later headed the Shanghai Municipal Financial Office, playing a crucial role in communication with foreign investors.
In October 2015, Fang Xinghai was appointed Vice Chairman of the China Securities Regulatory Commission until stepping down in July 2024.
According to reports from informed sources cited by The Wall Street Journal, there were warning signs before Fang Xinghai’s removal from office. In recent years, he had attempted to take up a position at the World Bank in Washington D.C. but his application was rejected by the Central Organization Department of the Communist Party last year.
It was revealed that while Fang’s overseas travel application was denied, he was also ordered to submit a detailed written report of his personal career to party and government officials—a procedure usually reserved for officials embroiled in scandals.
In June of this year, Fang Xinghai attended the World Economic Forum meeting in Dalian. However, on July 24, he was scheduled to attend a meeting in Beijing but according to eyewitnesses, although there was a seat with his name tag still present, he was absent.
The Financial Times described Fang as one of the few senior officials widely believed to be able to calm China’s often turbulent markets—his public assurances have been regarded as credible due to his understanding of the mechanisms he describes.
In recent years, the Communist Party leadership has emphasized political loyalty, leading to the removal, marginalization, or investigation of a number of technocratic bureaucrats. The Financial Times believes that this has made it difficult for foreign investors in Beijing to find reliable interlocutors and has exacerbated general concerns about whether technical competence still matters in a system increasingly focused on political loyalty.