An inspection team of the Party's Central Commission for Discipline Inspection (CCDI) to the China Securities Regulatory Commission (CSRC) recently warned officials responsible for IPO work of problems in the approval process of share listing.

Top officials at the IPO department of the CSRC and those serving executive roles were told to enhance anti-graft efforts and to be clean at a meeting with discipline inspection officials, according to a statement on the website of the CCDI and the National Supervisory Commission.

The meeting was held as China intensifies its corruption crackdown in the financial sector. On June 14, CCDI said Xu Tie, a senior CSRC official at its Shandong bureau, was placed under investigation for alleged wrongdoings.

As of June 18, at least 20 officials from the financial sector had been placed under investigation or expelled from the Party, domestic news portal China Newsweek reported.

An IPO approval is an important government power exercised by the CSRC, and the IPO department should have the interests of the Party, the people and investors in mind, the CCDI statement said.

IPO-related criminal cases uncovered in recent years have exposed the weak link of discipline, undermined the credibility of the CSRC and caused serious negative impact, which must be addressed effectively, the statement said. 

IPO officials should understand the severity of the situation, where those in decision-making capacities are targeted by people with illicit requests and bribes, and become more vigilant. Since 2004, many officials at the department, including former CSRC vice-chairman Yao Gang, have been found to have violated the law.

"A deeper crackdown on corruption will bring positive results to the financial sector," a broker who declined to be named told the Global Times.

Global Times