Wed. Feb 1st, 2023

Regulation HK

Financial Regulator

CSRC Official Faces Criminal Prosecution for Corruption

2 min read

The former head of the CSRC’s Shandong branch was found to have accepted gifts and bribes and engaged in illegal stock trading.

The CSRC (China Securities Regulatory Commission) has announced that the former party chief and head of its Shandong branch has been expelled from the CCP (Chinese Communist Party).

Feng Henian was placed under investigation by the CCDI (Central Commission for Discipline Inspection) in mid 2022 for “severe breaches of discipline and the law.”

Feng first joined the CSRC in 1997 and served in several roles before being appointed as party secretary and departmental chief of the Shandong branch from December 2013 to July 2015. From September 2015 to June 2022, he served as party secretary of Minsheng Securities (chairman since December 2016).

The CCDI investigation found that Feng, after leaving the CSRC, continued to use the value of his position to amass wealth. “This is a typical example of political and business ‘revolving door’ corruption,” the CSRC’s statement said.

Feng is said to have been disloyal to the CCP, concealed stolen money, accepted high end gifts and bribes, engaged in illegal stock trading and equity investments to obtain large profits, and committed other “violations of integrity and discipline”.

The statement says Feng’s “illegal income” was confiscated and that his case was transferred to the procuratorate for review and criminal prosecution.

Separately, the former head of CISF (China Insurance Security Fund) legal department, Fu Fei, has also been expelled from the CCP for corruption and faces prosecution. CSIF is an industrial risk bailout fund that resolves insurance industry risks.

A notice from the CBIRC (China Banking and Insurance Regulatory Commission) says Fu accepted business class flights, banquets, hotel accommodation and other benefits and bribes. He is also said to have abused his power in the disposal of “important assets”, causing “heavy losses to public property”.

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