China will intensify its fight against corruption by working with the country's stock market commission to watch over graft and abuse of power. China's corruption watchdog found violations in which companies pay officials to gain approvals in their regulations.
An article published by the Central Commission for Discipline Inspection (CCDI) said that China is stepping up efforts to battle corruption in the securities market to reduce financial risks after they found irregularities involving the misuse if vetting power.
According to the article, one official is guilty of receiving large cash bribes to secure the China Securities Regulatory Commision (CSRC) approval for financing. According to the CCDI, China's top securities regulator Liu Shiyu said that the entire supervisory system should learn from past corruption cases and they need to defend the disciplinary "red line".
The report also said that regulators with vetting power are prone to corruption because decisions have a direct impact on the interests of market players. It is stated that the corruption watchdog found 135 individual cases of disciplinary violations at the CSRC in five years leading up to the 19th Communist Party Congress in last year and they have identified another 33 cases since then.
According to Zhao Leji, head of the Party's internal anti-corruption agency announced that special "inspection teams" will be dispatched to state-owned companies in the finance sector in an effort to fight corruption. The Beijing Youth Daily reported that Zhao said sending the inspection teams means that they are "installing surveillance cameras" on its state-owned finance corporations.
The Chinese President initiated a sweeping anti-corruption campaign to track down corrupt officials since his rise to power in 2012. According to reports, the country's finance sector traced several senior officials getting tangled in corruption. Yao Zhongmin, vice president and deputy chief of the Party Committee at the China Development Bank, was proven guilty by a Chinese court of taking bribes amounting to 36 million yuan. Zhongmin will be sentenced to 14 years in prison.
Wang Yincheng, Former president of the state-owned People's Insurance Company of China, was trialed in accusations of misbehaviors that include pursuing extravagant pleasures, using public funds to pay his travel expenses, and changing his business trips to play golf. He is also accused of receiving bribes in exchange for his help with project contracts, giving staff promotions, and hiring their children at the company.
