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Fourth Former IPO Regulator Goes Missing Amid Corruption Crackdown

Published: Nov. 19, 2024 1:51 a.m. GMT+8

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In 2009, the CSRC established the ChiNext Department to meet the unique needs of the newly launched ChiNext Board

A fourth former official responsible for overseeing initial public offerings (IPOs) at China’s top securities regulatory body has gone missing amid an intensifying crackdown on stock market corruption.

Wu Guofang, who used to work at the China Securities Regulatory Commission (CSRC) but is currently head of Guosen Securities’ investment banking business, has been out of reach, Caixin has learned.

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Wu Guofang, former head of departments at the CSRC and now VP at Guosen Securities, is missing amid a corruption crackdown.
Wu is the fourth ex-CSRC official to face trouble, following corruption investigations into Yang Jiaohong, Li Youqiang, and Zhang Jun.
The non-rotational IPO review process previously used by the CSRC has been identified as fostering corruption, prompting changes towards strict annual rotations.

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Who’s Who

Guosen Securities: Guosen Securities is a Shenzhen-listed firm where Wu Guofang is currently the head of the investment banking business. Wu was named a vice president of Guosen in April 2023. The company has not disclosed any information regarding Wu's recent unavailability amid a crackdown on stock market corruption involving several former officials from the China Securities Regulatory Commission.

China Galaxy Securities: Wu Guofang joined China Galaxy Securities after leaving the CSRC in 2017, where he oversaw its investment banking business. He resigned from the brokerage house in 2023.

Dongxing Securities: Dongxing Securities is mentioned in the article as the current workplace of Zhang Jun, a former CSRC official overseeing new share sales, who is now under investigation. Zhang serves as a vice president at Dongxing Securities. The context implies that Zhang’s involvement with IPO reviews at the CSRC and his current role are part of a broader investigation into stock market corruption.

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