[Epoch Times December 1, 2021](Reported by Hong Kong Epoch Times reporter Li Bei) Recently, Zhu Yi, the original issuance review committee member of the China Securities Regulatory Commission, was investigated. The General Secretary of the Communist Party of China Xi Jinping’s campaign to cleanse the financial system further intensified its efforts after the important mid-term party congress of the Communist Party of China (the Sixth Plenary Session) held in early November.
On November 26, the website of the CPC Central Commission for Discipline Inspection reported that Zhu Yi, the original issuance review committee member of the China Securities Regulatory Commission and the general manager of Guotai Junan Investment Banking Department, was reviewed, highlighting Zhu Yi’s third-term issuance review committee member of the China Securities Regulatory Commission and the Shanghai Securities Regulatory Commission. The identity of the original investigator of the Securities Regulatory Bureau.
The Issuance Examination Committee of the Chinese Communist Party Securities Regulatory Commission is a special examination agency established by the Chinese Communist Party Securities Regulatory Commission. It holds the authority to approve whether a company can be listed. In the past decade or so, companies waiting for IPO approval have lined up, with hundreds of IPO backlogs each year, which has also increased the power of the issuance review committee. In addition to the CSRC, members of the Issuing Examination Committee also come from related funds, securities firms/investment banks, accounting firms and law firms.
In the back inspection of the financial system by the authorities in January 2020, the exchange of money and benefits between some members of the Issuing Examination Committee and listed companies, accounting firms and law firms undertaking listings, as well as brokers and funds, has gradually been exposed.
According to the notice from the Central Commission for Discipline Inspection, Zhu Yi served as a member of the 14th, 15th and 16th Main Board Issuance Examination Committee of the China Securities Regulatory Commission from May 2012 to September 2017. At the same time, he also served as a member of the China Securities Regulatory Commission. Deputy Director of the Office of the Shanghai Securities Regulatory Bureau and investigator of the Legal Affairs Office. In January 2018, a few months after he stepped down as a member of the Issuing Examination Committee, he went to Guotai Junan Securities Co., Ltd. as an executive, responsible for the company’s investment banking business.
The Chinese media “21st Century Business Herald” stated that Zhu Yi’s choice of Guotai Junan may be related to his boss and former deputy director of the Shanghai Securities Regulatory Bureau Zhu Jian. The latter took the post of Vice President of Guotai Junan Company in September 2016 and joined the Bank of Shanghai as President in September 2020.
The largest shareholder of Bank of Shanghai is Shanghai Lianhe Investment Co., Ltd., founded and controlled by Jiang Mianheng, the son of former party leader Jiang Zemin. The matter was disclosed in January 2015 by the official WeChat account of the Chinese Communist Party’s official media “Beijing Youth Daily” “Zhengzhi Bureau”.
Three Main Board Issuing Examination Committee Members of the Securities Regulatory Commission were investigated
In addition to Zhu Yi, the “21st Century Business Herald” report also stated that the other two officials who were investigated earlier and served as members of the Main Board Issuing Examination Committee of the China Securities Regulatory Commission were Chen Xiang, vice president of Tianjian Certified Public Accountants, and The Shanghai Stock Exchange issued the operation of the deputy general manager of the Shanghai City Center.
Among them, Cao Jian has served in the Shanghai Stock Exchange for nearly 20 years. He has served as deputy director of the issuance and listing department, assistant director of the company department, and deputy general manager of the issuance center of the Shanghai Stock Exchange.
Tianjian Certified Public Accountants stated on its official website that among the accounting firms with securities and futures-related practice qualifications, Tianjian ranked second in China in terms of the number of listed companies.
All three of them have served as members of the CCP’s Issuance Examination Committee for three sessions, and the time they worked together was from April 2014 to September 2017 for the sixteenth session of the Issuance Examination Committee. This period was the most turbulent time for China’s financial market. In 2015, there was also the biggest stock market crash since the Chinese stock market began in 1990. The stock market continued to plummet in less than a month, evaporating more than 20 trillion yuan in market value (3.13). Trillion US dollars), during which half of the listed companies were suspended from trading.
This stock market crash caused shocks in the financial and political circles, and was regarded as a “financial coup” against Xi Jinping by anti-Xi forces.
On September 18 this year, the Supreme Procuratorate of the Communist Party of China formally entered the China Securities Regulatory Commission. In the previous two days, the China Securities Regulatory Commission and the six departments of public affairs, procuratorate, and law established a coordinating working group for cracking down on illegal activities in the capital market. And double supervision of the industry.
China Securities Regulatory Commission’s GEM review “big sister” fell
On October 5, the Central Commission for Discipline Inspection also issued a notice that Zeng Changhong, the former first-level inspector of the Investor Protection Bureau of the China Securities Regulatory Commission, was under review. Zeng Changhong was called the “big sister” of the China Securities Regulatory Commission’s GEM review by Caixin.com, the official media of the Chinese Communist Party’s finance and economics industry.
Zeng Changhong joined the China Securities Regulatory Commission in 1998 and has worked in the issuance department for at least 16 years of his work for more than 20 years. From November 2009 to December 2016, she served as the deputy director of the issuance supervision department and deputy director of the issuance supervision department of the ChiNext, holding the real power of the company’s listing and issuance.
After the stock market crash in 2015, Zeng Changhong was transferred to the first-level inspector of the Insurance Bureau, which was tantamount to being removed from the real power; and Li Liang, the deputy director of the GEM department who also held the real power of the GEM review, was transferred after the 2015 stock market crash. Has been expelled from the party and public office.
Although Li Liang was sacked from the post of Director of the Insurance Bureau at the time, the prosecutors clearly accused him when he was tried in 2016 that he was investigated and punished due to problems during his work in the ChiNext Department.
Caixin.com described how companies were repeatedly pushed up their share prices and increased the risk of skyrocketing and falling when they were listed on the GEM: GEM listed companies achieved high P/E ratios when they went public and were smashed; after they went public, they used over-raising. Funds have aggressively acquired assets in the industry, filling in imaginary numbers with real numbers, making them more optimistic by the market and further pushing up their valuations.
Provincial officials involved in the supervision of listed companies fell
Tong Daochi, former member of the Standing Committee of the Hainan Provincial Party Committee and Secretary of the Sanya Municipal Party Committee, who was prosecuted by the procuratorate on September 30 this year, was investigated and punished in part because of his corruption in the supervision of listed companies when he was in the China Securities Regulatory Commission. He may be the highest level official in China who has been punished by law for the crime of insider trading in the securities industry so far.
During the 14 years from 2000 to 2014, Tong Daochi served as deputy director of the listed company supervision department and deputy director of the issuance supervision department at the China Securities Regulatory Commission, and was in charge of the approval of listed companies. He used to be Zeng Changhong’s superior and had many intersections with her in the China Securities Regulatory Commission.
The accusations against Tong Daochi issued by the Chinese Communist Party’s inspection agency on September 30 included the five official positions he had held in the China Securities Regulatory Commission and the two aforementioned provincial official positions.
The indictment specifically emphasized that Tong Daochi, as the deputy director of the issuance supervision department of the China Securities Regulatory Commission, was an insider of securities inside information. After learning the relevant stock inside information, he informed others to buy and sell relevant stocks before the relevant information was released. The circumstances are particularly serious, and should be investigated for criminal responsibility for the crime of bribery and insider trading in accordance with the law.
Editor in charge: Lian Shuhua#