Former China stock regulator broke law in IPO vetting, watchdog says

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The headquarters of the Central Commission for Discipline Inspection of the Communist Party of China is pictured in Beijing

SHANGHAI (Reuters) – China’s top anti-graft watchdog said on Friday that Cao Jian, a former securities regulator responsible for vetting initial public offerings (IPOs), “seriously violated disciplines and laws” and had been removed from Communist Party membership and his public role.

Cao, formerly deputy head of the IPO review centre of Shanghai Stock Exchange’s STAR Market, accepted gifts, traded stocks using other people’s accounts and leaked confidential information, the Central Commission for Discipline Inspection (CCDI) said in a statement on its website.

Cao, who also had a stint at the China Securities Regulatory Commission (CSRC) as a member of the securities issuance review committee, also made huge, illegal gains from buying stakes in listing candidates, CCDI said.

China’s ruling Community Party turned its sights on the country’s vast financial sector in October, starting a new round in a years-long campaign to uncover corruption and illegal dealings.

(Reporting by SHANGHAI NEWSROOM)


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