Detained top official at China’s securities watchdog ‘linked to disgraced former presidential aide Ling Jihua’

The high-profile downfall of China’s No 2 securities regulator is reportedly linked to disgraced former presidential aide Ling Jihua, as mainland media unravels further details about the ongoing inquiry.

Yao Gang, 53, vice-chairman of the China Securities Regulatory Commission, was revealed to have been placed under investigation for alleged corruption on Friday night.

Yao is the most senior figure within China’s financial sector to have been caught up in the crackdown following this summer’s stock market meltdown.

Read more: Top official at China's securities watchdog caught in anti-corruption crackdown

He was in charge of initial public offering approvals before moving to oversee the bond and futures sectors earlier this year.

China’s anti-graft watchdog, Central Committee for Discipline Inspection, said Yao, 53, was under investigation for suspected “serious violation of party discipline” - a euphemism for corruption - but did not reveal further details in its brief statement.

However, mainland financial news websites were quick to make suggests, including claims that Yao could be implicated in the corruption case involving Ling, once the top aide to former president Hu Jintao.

The China Business News reported that Yao’s former secretary, Liu Shufan, who was detained in September on suspicion of taking bribes and insider trading, allegedly borrowed a large sum of money from a detained business executive associated with Ling.