Two people chat outside the headquarters of the China Banking and Insurance Regulatory Commission on April 8. Photo: IC

The Communist Party of China's (CPC) top disciplinary agency on Wednesday pledged to strengthen supervision to prevent risks and maintain the stable operation of capital markets, according to a notice released on its official website.

The CPC Central Commission for Discipline Inspection (CCDI) said its branch at the China Securities Regulatory Commission, the top securities regulator, will strengthen securities supervision and law enforcement to prevent and defuse capital market risk amid rising uncertainties linked to the COVID-19 pandemic.

The agency also vowed to strengthen supervision focused on the quality of listed companies and intensify efforts to crack down on illegal activities. Efforts will be taken to maintain a strong and persistent crackdown on corruption across the capital markets, and to identify and respond to emerging problems in a timely manner, according to the notice.

The move came after several bank executives faced disciplinary punishment in recent days.

According to the official website of the CCDI, four bank executives were expelled from the Party and public offices between March 27 and April 2. They were Lu Jinwen, former Party committee member and vice president of the Guangdong branch of the Industrial and Commercial Bank of China; Wang Zhenlin, former deputy secretary of the Party committee and vice president of the Agricultural Bank of China's Hebei Branch; Zhang Jianhui, former Party secretary and chairman of Longjiang Bank; and Xie Hongru, former Party secretary and president of the Guangzhou branch of China CITIC Bank. 

So far in 2022, nine financial officials have been expelled from the Party or faced another disciplinary punishment, according to China Banking and Insurance News.

China has tightened its crackdown on illegal activities in the financial sector to promote the high-quality development of the country's capital market.

The top anti-graft watchdog said in February that it had uncovered weaknesses in the financial sector during a two-month investigation, after concluding an inspection of 25 institutions, including the central bank, the banking and insurance regulator, stock exchanges, commercial banks and asset-management companies.

Some had insufficient awareness of preventing and defusing financial risks, and some financial units had integrity risks in credit.

The CCDI vowed to maintain a strong, persistent crackdown on corruption. In January, it said routine supervision and special inspections should both be strengthened, and the issue regarding "the latter part of the story" of addressing problems discovered during inspections into central-level financial institutions should be taken seriously, according to the Xinhua News Agency.

Global Times