Recently, when former chairman of the China Securities Regulatory Commission, Yi Huiman, was taken away for investigation, several of his family members were also taken in. Reports suggest that more than forty of his relatives, friends, and subordinates have been arrested.
On Saturday, September 6th, the Central Commission for Discipline Inspection of the Communist Party of China and the National Supervisory Commission announced on their website that Yi Huiman, the vice chairman of the Economic Committee of the 14th National Committee of the CPPCC and former chairman of the CSRC, is under investigation for serious violations of discipline and law.
According to sources familiar with the matter who spoke to the Economic Observer, Yi Huiman was taken away for investigation around the end of August 29th, and several of his family members were also taken in.
Financial industry insiders revealed that Yi Huiman has a sister and three brothers, one of whom used Yi’s name in the past to network within the financial circles of Zhejiang province, even engaging in financing business with local enterprises under the guise of being a relative of Yi Huiman.
It is reported that the investigation into Yi Huiman includes whether his family members obtained undue benefits during his tenure as chairman of the CSRC.
Before Yi Huiman’s downfall, there were already signs of trouble in his hometown of Zhejiang. After the Central Inspection Team entered Zhejiang in mid-April, top officials of China Construction Bank and Agricultural Bank of China’s Zhejiang branches were successively investigated. These officials included several classmates of Yi from the Zhejiang Bank School in the 1980s.
Among them was Lin Peng, former Party Committee member and secretary of the Discipline Inspection Commission of the China Agricultural Bank’s Data Center, who was investigated in April on suspicion of serious violations of discipline and law. He was Yi Huiman’s fellow villager, and his career advancement was also facilitated by Yi’s recommendation.
Similarly, Shen Rongqin, former Party Committee secretary and president of the ICBC Zhejiang Branch, was investigated in May for alleged serious violations of discipline and law. He was a classmate of Yi Huiman at the Zhejiang Bank School in the 1984 class.
In addition, Lou Wenlong, former Party Committee member and vice president of China Agricultural Bank, was sentenced to life imprisonment for bribery on August 25th. He was also a classmate of Yi Huiman at the Zhejiang Bank School.
A major shareholder of a listed company who had contact with Yi Huiman revealed that Yi Huiman has always had a deep affection for his hometown and alma mater. Before taking office as the chairman of the CSRC, he specifically expressed to some classmates that they could approach him if they needed help with anything.
The core clues behind Yi Huiman’s investigation are likely related to the recent “financial anti-corruption storm” within the Industrial and Commercial Bank of China.
Since the intensified anti-corruption efforts within the ICBC system in 2022, several high-ranking officials have been successively arrested. One of them was Gu Jianggang, former general manager of the China Industrial and Commercial Bank’s Asset Management Department, who was investigated for serious violations of discipline and law in August 2023. He was a long-time loyal subordinate of Yi Huiman.
Gu Jianggang’s case also implicated China Golden Capital, where Ding Wei, former chairman of the board, and several core members were taken away earlier this year. It is said that the several hundred billion private equity projects involved in Golden Capital in the early days were jointly promoted by Ding Wei, Gu Jianggang, and others.
Furthermore, before Yi Huiman’s downfall, several of his subordinates at the CSRC were also arrested. This included Wang Jianjun, former vice chairman of the CSRC, Wang Huimin, former head of the Discipline Inspection Team of the Central Commission for Discipline Inspection stationed at the CSRC, Yao Qian, former director of the Technology Supervision Department of the CSRC, Li Xiaoqiang, former deputy director of the Issuance Supervision Department of the CSRC, and Wu Guofang, former deputy director of the Legal Department of the CSRC.
On September 5th, a blogger known as “Uncle Bao” on platform X revealed: “More than forty people from Zhejiang, CSRC, and China Golden Capital around Yi Huiman have been taken away.”
He mentioned that during Yi Huiman’s tenure, over 2,000 listed companies were approved, with some Zhejiang entrepreneurs paying hefty sums to facilitate their IPO processes. This has sparked anger among many investors who believe that the interests of small shareholders were disregarded and that the national capital was misused for these shell companies.
Some netizens pointed out similarities with other officials, such as Liu Shiyu, who also paved the way for many Jiangsu companies to go public. They criticized the privileged few who exploit their power without repercussions, leading to detrimental consequences for ordinary investors.
Public records show that Yi Huiman, 60, worked at the China Industrial and Commercial Bank for 35 years before becoming the chairman of the CSRC in 2019. He was a delegate to the 19th and 20th National Congress of the Communist Party of China, member of the 19th Central Alternate Committee, and member of the 20th Central Committee.
In February last year, Yi Huiman was unexpectedly removed from his position as chairman of the CSRC without an official explanation. This occurred during a significant downturn in the Chinese stock market, with the Shanghai and Shenzhen 300 Index hitting a five-year low, prompting institutional and retail investors to cut losses.
In June of the same year, Yi Huiman transitioned to a secondary position at the National Committee of the CPPCC, serving as a member of the 14th National Committee and deputy director of the Economic Committee.
It is worth noting that both of Yi Huiman’s predecessors as chairman of the CSRC, Xiao Gang and Liu Shiyu, were also removed from office during their terms.
Xiao Gang, a former deputy governor of the People’s Bank of China who previously oversaw the Bank of China, became chairman of the CSRC and Party Committee in 2013 but was removed from his position in less than three years.
Liu Shiyu, who succeeded Xiao Gang, vowed to crack down on “capital crocodiles” exploiting retail investors during his tenure. However, he was unexpectedly reassigned in January 2019 and later investigated in May of the same year. Netizens joked that being the chairman of the CSRC has become a high-risk profession.