Top official at China's securities watchdog caught in anti-corruption crackdown
CSRC vice-chairman Yao Gang was one of the officials responsible for stabilising the market
The mainland's anti-graft watchdog has netted the most senior securities regulator to date in a broad crackdown on the financial sector in the wake of the summer's stock market meltdown.
Yao Gang, vice-chairman of the China Securities Regulatory Commission, was under investigation over suspected "serious violation of party discipline" - a euphemism for corruption, the Central Commission for Discipline Inspection said on Friday night.
Yao, 53, was one of the commission's most senior officials, second only to chairman Xiao Gang. He was in charge of initial public offering approvals before moving to oversee the bond and futures sectors earlier this year.
"It's kind of score settling after the stock market rout," one dealer said. "Yao was in charge of IPOs. And the IPO approval sector was quite corrupt."
Read more: China stock market rout seen as opportunity to push reform and broaden investor base
Another trader from a mid-sized bank in the mainland's east said Yao's sacking was the result of "internal politics". The trader said there had been rumour since Wednesday that Yao was under investigation for insider trading and more officials might fall.
