Securities watchdog official under investigation
Technology supervision director accused of ‘serious violation of discipline and law’
An official with China’s securities regulator, who was also a director of a research institute within the central bank, is under investigation for “serious violation of discipline and law”, days after directives from authorities to further regulate the financial markets.
Yao Qian, who was the first director of the digital currency research institute within the People’s Bank of China (PBOC), currently serves as director of the department of technology supervision at the China Securities Regulatory Commission (CSRC).
He is being investigated by the Central Commission for Discipline Inspection and a local inspection unit, according to announcements published yesterday.
The investigation comes amid a series of moves led by the CSRC to tighten screws on the country’s capital markets and restore investor confidence.
“The latest round of inspections led by China’s regulatory authorities covered various aspects of the financial system, signalling a strengthening of oversight,” said Shen Meng, a director of Beijing-based investment firm Chanson & Co.
The functions of the department of technology supervision include drafting and implementing rules for the securities, futures and fund industries, as well as regulating data, cybersecurity and other “relevant critical information infrastructure”, according to a document published on the CSRC’s website in December.
Regarding Yao’s affiliation with the digital currency think tank under the PBOC between 2017 and 2019, Shen said: “While casualties are unavoidable, digital currency still plays an important role in the future of China’s financial system, and this investigation won’t stop regulatory authorities from pushing for further development of the technology.”
Earlier this week, in response to the nine reform measures unveiled by the State Council to improve the performance of listed companies and protect investor interest, the CSRC pushed for a revamp of the securities investment fund law and greater accountability for fund managers.
Yao is a technocrat with degrees in computer science and information systems management from top Chinese institutions. He joined the CSRC in 1997 and had held various roles, including deputy head of the computer administration department of the information centre.