China’s banking and insurance regulator said it has taken action against some of its staff for making prohibited investments and financing moves, effectively banning them from using their influence in public office to invest or borrow money.
The China Banking and Insurance Regulatory Commission (CBIRC) has collated reports from 27,000 of its staff detailing their investment and financing activities and subsequently found 429 people had engaged in forbidden financial activities involving 160 million yuan ($24.8 million), said an official statement (link in Chinese) released Tuesday. Subsequently, it has undertaken 106 disciplinary actions against those who violated the regulations, it said.
The move adds to evidence that regulators have stepped up a crackdown on corruption and conflicts of interest in the financial industry.
In a regulation issued in October, the CBIRC said the so-called “red line” for its staff and their close relatives prohibits them from taking advantage of their influence in public office to enjoy preferential prices, conditions or procedures when making investments or securing loans.
There were many cases of staff and their close relatives improperly investing in non-listed companies, the CBIRC said. The regulation also forbids staff and their close relatives from investing in the shares of listed companies directly under its oversight, it said.
In a recent corruption case, a former head of Industrial and Commercial Bank of China Ltd.’s Shanghai branch, Gu Guoming, was found to have illegally issued high-return financial products to people linked to regulatory officials, Caixin previously reported. He stood trial last year for allegedly taking nearly 137 million yuan in bribes.
Contact reporter Guo Yingzhe (yingzheguo@caixin.com)
