Brother of Hu aide linked to new probe into listing irregularities at securities watchdog

The graft probe of a senior mainland securities regulator this week could be related to the ongoing investigation of the younger brother of Ling Jihua, the aide to former president Hu Jintao, according to an inside source and a report by a respected mainland news outlet.

Li Liang, who was chief of the Investor Protection Bureau at the China Securities Regulatory Commission (CSRC), was taken away by the party's anti-graft agency on Monday morning. In a statement that night, the CSRC said Li was being investigated for legal infringements and disciplinary violations.

There were indications that Li may also be implicated in the investigation of Ling Wancheng, the brother of Ling Jihua.

"Li's case is obviously related to a high-level probe directed by the top leadership," said the source, who cannot be named due to the sensitivity of the case. "Officials [with the CSRC] believe his bold behaviour in helping questionable firms controlled by Ling Wancheng obtain listing approvals was what prompted the investigations."

Li was in charge of overseeing legal affairs concerning listing applications on the second board market, or ChiNext, from 2009 to 2012 - a position widely perceived as having influence over the securities regulator's IPO approval process.

Meanwhile, the mainland news publication reported that a private equity firm, Huijin Lifang, where someone named Wang Cheng - a name known to have been used by Lin Wancheng - served as the chairman of one of its subsidiaries, had invested in seven companies between 2008 and 2010. Those companies, including LeTV, were successfully listed between 2009 and this year.

citing anonymous sources, said Ling had helped with the listing of LeTV in 2010, at a time that coincided with Li's most influential days at the CSRC public offering division.