Guosen Securities president found hanged amid investigation into stock market misconduct

PUBLISHED : Saturday, 24 October, 2015, 1:45am
UPDATED : Saturday, 24 October, 2015, 2:31pm

The president of state-owned Guosen Securities, Chen Hongqiao, hanged himself in his Shenzhen home on Thursday night, mainland media outlet Caixin reported on Friday, quoting police in the former boomtown in southern Guangdong province.

Chen was a former senior stock market regulator and was a deputy of Zhang Yujun, the former assistant chairman of the China Securities Regulatory Commission, who has been under investigation for "severe violation of discipline" since September 16, according to a statement by the Central Commission for Discipline Inspection.

In an announcement filed to the Shenzhen Stock Exchange on Friday afternoon, state-owned Guosen Securities said Chen had died in unexplained circumstances.

"The company's operations are normal and there's nothing else that needs to be disclosed," Guosen said in the statement. The company was told of Chen's death by his family, it said.

Shenzhen police were not available for comment on Friday.

Chen, 49, joined Guosen Securities in 2014. Before that he had been a deputy general manager of the Shenzhen Stock Exchange from 2001, according to a resume on China Central Television's website.

Chen also held consultancy positions with the State Council, Ministry of Science and Technology, and China Development Bank.

Zhang was general manager of the Shenzhen Stock Exchange from 2000 to 2008.

Zhang, 53, is the first senior official from the securities regulator entangled in a government investigation after the authorities launched a crackdown on stock market misconduct in the wake of the market meltdown that started in June.

Three fixed-income executives from Guosen Securities were charged last month with misconduct in the bond markets.