Former Fourth IPO Approval Official Goes Missing After National Day; Current Position as Senior Executive at a Major Brokerage Firm (AI Translation)

“十一”后第四名前发审官员失联 当下身份为一家大型券商高管

[para. 1] In mid-October 2024, the investigation of Yang Jiaohong, a former director at the China Securities Regulatory Commission (CSRC), underscored the deepening anti-corruption drive in securities issuance review. Yang, who left CSRC eight years prior, avoided the spotlight until his name surfaced in ongoing inquiries. Another official, Li Xiaoqiang, also faced investigation shortly thereafter on November 15, reinforcing this crackdown within financial regulatory circles.

[para. 2] Zhang Jun, once deputy director at CSRC’s Issuance Division and later a vice president at Dongxing Securities, similarly disappeared amid these probes. The scrutiny now extends to Wu Guofang, deputy general manager of investment banking at Guosen Securities, who previously held significant roles at CSRC and China Galaxy Securities.

[para. 1][para. 2] Wu, with a background in law and extensive regulatory experience, transitioned from the CSRC to Galaxy Securities in 2017 amidst restructuring, later moving to Guosen in 2024. His career illustrates the mobility and interconnected nature of top financial and regulatory roles, now under anti-corruption scrutiny.

[para. 2] Emphasizing Wu's regulatory roots, he served at multiple departments within CSRC, contributing to significant projects before his corporate tenure. Wu's transition to Galaxy facilitated managerial rejuvenation, aligning with broader personnel changes, and was part of strategic efforts to redefine the company's position amidst market shifts.

[para. 1][para. 3] At Guosen Securities, Wu Guofang led a major acquisition—purchasing a controlling stake in Wanhe Securities, aimed at revitalizing its potential. The transaction marked a key move in strengthening Guosen’s market stance, focusing on cross-border asset management through strategic expansion and integration.

[para. 3] Wanhe, struggling with operational and regulatory challenges, became a strategic target for consolidation within Shenzhen’s state assets. The acquisition underscores a broader movement towards enhancing operational efficiency and leveraging synergies within state-owned financial entities, aiming to bolster business performance and regulatory compliance.

[para. 2][para. 3] Corruption within the IPO review process, historically exacerbated by a lack of transparency, has prompted decisive actions like these investigations and acquisitions. The unchecked powers and competitive pressures previously allowed illicit practices, prompting recent systemic reforms.

[para. 2] The investigation wave also highlights past instances of corruption where regulatory officials exploited their positions for personal gain. Such cases have pushed the need for reevaluation and reforms, including the rigorous annual reelection of review committee members.

[para. 2] Given the technological advancements and intricate nature of companies involved, there’s recognition that purely administrative experience is inadequate for the review roles, necessitating stringent professional standards. These occurrences have called into question the historical integrity of the IPO review system, yet pave the way for more accountable and transparent governance structures.

[para. 2] Wu Guofang and others’ multiple-term service on IPO review committees further emphasizes the embedded challenges of ensuring impartiality in an environment ripe for misconduct. The controversies surrounding such positions necessitate continuous efforts to mitigate systemic abuses and restore credibility to securities regulation.

This narrative captures the entangled personal and institutional dynamics within China's securities market, spotlighting a critical phase in regulatory overhaul prompted by leadership accountability and structural reform.