Official of China’s securities watchdog under investigation for ‘serious violation’ amid uptick in market regulation
- Yao Qian is the director of the department of technology supervision at the China Securities Regulatory Commission
- He is being investigated by the Central Commission for Discipline Inspection and a local inspection unit, according to official announcements
An official with China’s securities regulator, who also directed a research institute within China’s central bank, is under investigation for “serious violation of discipline and law”, days after directives from authorities to further regulate the country’s financial markets.
Yao Qian currently serves as the director of the department of technology supervision at the China Securities Regulatory Commission (CSRC), and was the first director of the digital currency research institute within the People’s Bank of China (PBOC).
He is being investigated by the Central Commission for Discipline Inspection (CCPI) and a local inspection unit, according to official announcements published on Friday. The CCPI is the highest supervisory body of the Chinese Communist Party.
The investigation comes amid a series of moves led by the CSRC to tighten screws on the country’s capital markets and restore confidence among domestic and overseas investors.
“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, director of Beijing-based investment firm Chanson & Co.
The department of technology supervision’s functions, which were laid out late last year after the securities watchdog revamped its organisational structure, include drafting and implementing rules for securities, futures and fund industries, as well as regulating data, cybersecurity and other “relevant critical information infrastructure”, according to an official document published in December on the CSRC’s website.
Regarding Qian’s previous affiliation with the digital currency think tank under the PBOC, 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.”
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In another move to curb derivatives risk, regulatory authorities were reportedly telling some of the country’s biggest brokerage firms to stop increasing their net exposure to products including “snowballs”, according to Bloomberg. A snowball is a type of exotic option product that saw near record-high returns recently as brokers tried to lure investors back to the market after a period of relentless sell-offs earlier this year.
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Yao, 54, is a technocrat with degrees in computer science and information systems management from top Chinese institutions. He joined the CSRC in 1997 and held various roles, including deputy head of the computer administration department of its information centre.
He was appointed as the director of the department of technology supervision in March 2020. His role at the PBOC’s digital currency institute started in 2017, until he was succeeded two years later by current director Mu Changchun.
