China’s anti-corruption campaign has entered a new and politically sensitive stage with the announcement that Yi Huiman, the former head of the China Securities Regulatory Commission (CSRC) and one of the most influential figures in the country’s financial system, is under investigation for “serious violations of discipline and law.” The probe, launched by the Central Commission for Discipline Inspection (CCDI) and the National Commission of Supervision, reflects both the political weight of Beijing’s long-running anti-graft efforts and the mounting pressures facing China’s fragile financial sector.

Yi’s case is particularly significant because of his stature and the roles he has occupied. A career banker who rose through the ranks of China’s state-owned financial giants, Yi previously served as chairman of the Industrial and Commercial Bank of China (ICBC), the world’s largest lender by assets. In 2019, he was appointed to head the CSRC, tasked with supervising China’s capital markets at a time when Beijing was increasingly dependent on stock listings and financial reforms to sustain economic growth.

Yi’s tenure at the CSRC ended abruptly in February 2024, following an episode of dramatic market turmoil. An estimated €3.2 trillion ($3.76 trillion) in investor value evaporated in a matter of weeks, rattling confidence in China’s markets and exposing vulnerabilities in regulatory oversight. Though Beijing blamed a combination of speculative trading and global headwinds, Yi became the most visible casualty of the crisis. His removal from office suggested that accountability, at least symbolically, would fall on him.

Despite his dismissal, Yi was not pushed completely to the margins of political life.........

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