Senior Chinese banking regulator under probe

A senior official at the China Banking Regulatory Commission (CBRC) is under investigation for suspected links to a loan scandal, the financial magazine Caixin reported, citing sources close to the matter. Yang Jiacai, assistant chairman of CBRC, has been under investigation since April 9 in connection with the scandal in Hubei province, Caixin said late on Saturday, following days of rumors circulating online that Yang had gone missing.

China’s graft watchdog on April 9 also announced an investigation into the chairman of the country’s insurance regulator, Xiang Junbo, the most senior financial regulator to be investigated as part of a government fight against graft. Yang could not be reached for comment.

No official announcement of an investigation into him has been made. His name and profile were still accessible on the CBRC website yesterday.

Caixin reported last Friday that Yang had been relieved of his duties, citing people with knowledge of the matter. CBRC did not respond to a faxed request for comment on Friday or to a second fax yesterday about the investigation. Yang’s last public appearance was on April 7 speaking at a news conference about new risk control guidelines for lenders as part of efforts to contain risks from a rapid build-up in debt. China’s top leaders have pledged this year to address financial risks and asset bubbles. President Xi Jinping has pledged to wage war on deep seated graft in the ruling Communist party until officials at all levels dare not be corrupt, warning that a failure to check the rot could threaten the party’s existence. — Reuters