After being under investigation for eight months, Yang Jiaohong, the former director of the Issuance Department of the China Securities Regulatory Commission (CSRC), has been expelled from the Communist Party and handed over to judicial authorities. Financial news websites disclosed that several hundred million yuan in cash were seized from his home.
On August 18th, an article titled “The Low-Key Life of the Former CSRC Issuance Department Director, Found Hundreds of Millions in Cash at Home” was published on Caixin’s website. According to informed sources, during the disciplinary investigation, 200 to 300 million yuan in cash were confiscated from Yang Jiaohong’s home.
According to the report from the Central Commission for Discipline Inspection of the Communist Party of China and the National Supervisory Commission stationed at the CSRC, as well as the Discipline Inspection and Supervisory Commission of Suqian City, Jiangsu Province on August 15th, a disciplinary review and investigation into Yang Jiaohong, the former director of the Issuance Supervision Department of the CSRC, was conducted into serious violations of discipline and law. Yang Jiaohong has been expelled from the Party and referred to the judiciary.
The report revealed that Yang Jiaohong took advantage of his position during his tenure and even after leaving office, utilizing the convenience derived from his previous position to subscribe to the original shares of companies preparing for IPOs. This behavior was described as a typical case of “escape-style resignation” corruption. Through means such as using “white gloves” and “shadow shareholders” to evade scrutiny, colluding with others, destroying and concealing evidence, resisting scrutiny, receiving gifts illegally, and subscribing to original shares of companies preparing for IPOs through “sudden investment” to obtain huge illegal profits.
In late October 2024, Caixin reported that Yang Jiaohong, who voluntarily resigned in 2016, was under investigation, almost 8 years after leaving the CSRC.
Public records show that Yang Jiaohong, born in the early 1970s in Shanxi Province, graduated with a master’s degree from the School of Finance and Economics at Renmin University of China and obtained a doctoral degree from the School of Business at Renmin University in 2007. He joined the CSRC in 1998 and worked in the Issuance Department for a long time, being recognized as one of the most experienced and professional directors in the department.
When the ChiNext board was launched in 2008, Yang Jiaohong was deeply involved in the related review process, later responsible for overseeing the listing of companies on the ChiNext board. He was highly recognized in the industry and taught courses on behalf of securities firms. Yang Jiaohong resigned in 2016.
Caixin reported that Yang Jiaohong, after leaving office, kept a low profile and did not appear in any financial institutions, yet led a particularly extravagant lifestyle, frequently playing golf at a near-professional level.
When Yang Jiaohong resigned in 2016, the stated reason was that his father at home was dealing with a chronic illness and needed care, and he also wanted to spend more time with his father. Even with this explanation, there were no clear reports of him joining financial institutions or new positions in the following years, only rumors of his involvement in private equity funds. He remained hidden within his former colleagues’ circle, keeping a very low profile.
A senior investment banker mentioned, “Younger people working in investment banking nowadays may not even recognize Yang Jiaohong. He was always in the issuance department and later handled financial and legal reviews for ChiNext IPOs, although he was only a department director, his position was crucial.”
The report noted that many deputy-ministerial, bureau-level, and department-level regulatory officials in the CSRC’s Issuance Department have been investigated in recent years. According to the latest investigation, Yang Jiaohong’s case directly points to the rampant corruption in the IPO approval process.