Recently, former Chairman of the China Securities Regulatory Commission (CSRC), Yi Huiman, has transitioned to a “second-tier” position within the Chinese People’s Political Consultative Conference (CPPCC), which has been characterized by some as a demotion. This move follows the dismissal and investigation of the two previous CSRC chairmen, Xiao Gang and Liu Shiyu. Analysts have commented on the unfortunate fate of three consecutive CSRC chairmen.
On June 6th, the Standing Committee of the CPPCC National Committee announced that Yi Huiman, a current Central Committee member and former CSRC Chairman, will take on a position within the CPPCC’s Economic Committee as the Deputy Director.
According to an article by Radio Free Asia host Gao Xin on June 7th, the new position assigned to Yi Huiman is perceived as a downgrade. Another article on June 10th suggested that being reassigned to a specific committee under the CPPCC at the age of nearly 60 as a Deputy Director represents a clear form of demotion, possibly hinting at an early retirement arrangement in the future.
Yi Huiman served as the ninth chairman of the CSRC. Gao Xin noted that the previous six CSRC chairmen either retired peacefully or transitioned to other positions. The seventh chairman, Xiao Gang, and the eighth chairman, Liu Shiyu, faced similar unfortunate outcomes like Yi Huiman.
The article highlights the high-risk nature of this position. The role of “Deputy Director” within the CPPCC is comparable to a “specialized committee member” within the National People’s Congress Standing Committee, involving a transfer of organizational and personnel responsibilities into the CPPCC’s structure. Xiao Gang continues to receive service and management from the retired officials bureau within the CSRC, while Liu Shiyu’s party organization relationships have been restored. Yi Huiman stands out as the only individual who has been ousted from the financial system and forced to receive a salary under the CPPCC.
Xiao Gang, a former vice president of the People’s Bank of China and head of the Bank of China, became a member of the 18th Central Committee of the Chinese Communist Party in 2012. In 2013, he was promoted to Chairman and Party Secretary of the CSRC, but stepped down in less than three years.
Xiao Gang’s son, Xiao Haojie, was rumored to have been arrested during the stock market turmoil in 2015, facing allegations of insider trading, illegal fundraising, and colluding with foreign entities to short sell A-shares. At that time, several officials under Xiao Gang, including then CSRC Vice Chairman Yao Gang, were dealt with. In 2016, Chinese media reported that “investors took the CSRC and Xiao Gang to court: inaction and misconduct,” leading to Xiao Gang’s dismissal.
The Wall Street Journal previously reported that during a meeting with senior officials including Xi Jinping, the CCP leader expressed dissatisfaction with the handling of market rescue work by the CSRC. It was disclosed that Xiao Gang appeared visibly distressed during that meeting.
After two years of absence, Xiao Gang reappeared in 2018 as an ordinary member of the 13th CPPCC National Committee during that year’s “Two Sessions.”
Liu Shiyu succeeded Xiao Gang as the CSRC chairman. When Liu was about to complete his three-year term as chairman in 2019, he was suddenly transferred to the position of Director of the Council of the All-China Federation of Supply and Marketing Cooperatives. In May of the same year, Liu Shiyu voluntarily turned himself in and was subsequently investigated.
In October 2019, the Central Commission for Discipline Inspection reported that Liu Shiyu had failed to implement major decisions of the Party Central Committee, made inappropriate public statements, lacked political awareness and confidentiality consciousness, engaged in corrupt practices, abused his power and influence for personal gain, intervened in the illegal purchase of housing for relatives, received gifts and bribes, among other infractions. Liu Shiyu was subjected to a two-year probation within the Party, demoted to a level-one researcher, and had his qualifications as a delegate for the 19th National Congress suspended.
In 2023, Liu Shiyu was found to have taken on a new role as a counselor at the headquarters of the People’s Bank of China, and attended events in that capacity.
The trajectories of these former CSRC chairmen, Xiao Gang, Liu Shiyu, and Yi Huiman, demonstrate the turbulent and often perilous nature of high-ranking positions within China’s financial regulatory system.