More heads may roll: Probe into former No 2 at China’s securities regulator may put more top officials in question

More top officials might fall in the high-profile investigation into the former second-in-command at the mainland’s securities regulator, Yao Gang, whose detention is likely linked to a corruption probe into disgraced former presidential aide Ling Jihua, industry insiders said.

But analysts said Citic Securities, another target in the sweeping crackdown on the financial sector, could escape harsh punishment with the announcement yesterday that the brokerage’s chairman, Wang Dongming, was retiring.

READ MORE: China’s Citic Securities announces retirement of chairman Wang Dongming

Citic Securities has struggled since its president, Cheng Boming, and several other top executives came under investigation for so-called trading irregularities. The departure of Wang, who was central to Citic Securities’ ascent to the nation’s top brokerage, could pave the way for a company-wide overhaul to help it hold on to its lead, analysts said.

The Communist Party’s anti-graft body announced on Friday that Yao, 53, was under investigation for alleged corruption. Yao, who was in charge of initial public offering approvals before moving to other duties earlier this year, is the most senior figure in the sector to have been caught up in the crackdown.

“IPO reviews and approvals have long been a hotbed for corruption and Yao Gang’s downfall could be just the start of a series of scandals,” a source close to the CSRC said.

The investigation is part of a broad crackdown on the financial sector that follows Beijing’s expensive but unsuccessful attempt to stem a massive stock market rout this summer. Some of the big names to come under investigation are CSRC assistant vice-chairman Zhang Yujun and top hedge fund manager Xu Xiang.