A third regulatory official involved in China’s initial public offerings has been arrested, throwing the highly politicised system for IPOs under further scrutiny.
The government’s tight grip over IPOs has long created incentives for corruption, as the fate of stock sales worth billions of dollars rests with low-paid civil servants. More than 600 companies are waiting for permission to debut on the Shanghai or Shenzhen stock exchanges, and wait times of more than a year are common.
At least three officials involved in IPO approvals have been detained this year. Financial website Caixin reported late on Wednesday that Xi Longsheng, chief inspection officer at the China Securities Regulatory Commission, had been escorted from his office by investigators in recent days. He had previously served as section chief in the agency’s issuance department.
The original article can be found at ft.com