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In a recent development, Wang Yawei, a prominent Chinese fund manager, was taken into custody in August as part of a broader crackdown aimed at combating corruption within China’s vast $61 trillion financial sector, according to a report by Reuters.
Wang Yawei, known for founding Qianhe Capital Management in Shenzhen and Top Ace Asset Management in Hong Kong, is currently under investigation by Chinese authorities, as reported by Reuters, citing information from three individuals familiar with the situation. This investigation is said to be connected to a broader inquiry into Zhu Congjiu, the former vice chairman of the China Securities Regulatory Commission.
Once celebrated as the “Big Brother” of China’s $3.8 trillion mutual fund industry, Wang gained notoriety in the early 2000s for his impressive performance at China Asset Management Co., which was then the country’s largest mutual fund manager. In 2012, he left the firm to establish his own investment company, Qianhe Capital Management Co. Despite these reports, neither Qianhe nor Wang could be reached for comments at the time.
The 52-year-old Wang joins a growing list of prominent figures in the finance world who have become ensnared in a wide-ranging crackdown on corruption, which has already led to the downfall of numerous high-ranking executives and regulators. Just last month, Wang Bin, the former head of China’s largest life insurance company, was sentenced to death with a two-year reprieve for accepting bribes and concealing overseas funds. Furthermore, China’s leading tech banker, Bao Fan, who chairs China Renaissance Holdings Ltd., has been missing since February, with his detention being extended by authorities.
Chinese authorities have made it clear that their efforts to clean up the financial industry are far from over, warning financial executives in late March about the ongoing crackdown. In the course of this year, at least 100 financial officials and executives have been subjected to investigation or punitive actions. Bankers have also been instructed to study President Xi Jinping’s ideology as the Communist Party tightens its control over the financial sector.
The initial announcement of an investigation into Zhu was made by China in early May for alleged violations of discipline and law. Since then, several financial executives, including Wang from Qianhe, have been implicated. Caixin Global had previously reported that a former executive from CSC Financial Co., one of China’s largest investment banks, was assisting authorities in the investigation involving Zhu.
Wang Qingshan, a former president at Zheshang Securities Co., who has not been in contact since late March, was reported by local media to have previously served as Zhu’s secretary when they both worked for the CSRC.
Among the notable individuals caught up in China’s clampdown on the financial sector are former Bank of China Ltd. Chairman Liu Liange and Tian Huiyu, the former president of China Merchants Bank Co.
President Xi has continued to push forward with his long-standing anti-corruption campaign after more than a decade in power. This campaign has resulted in the downfall of more than 1.5 million government officials, including the execution of Lai Xiaomin, the former chairman of China Huarong Asset Management Co., and the life imprisonment of Hu Huaibang, the former chairman of China’s largest policy bank.
