Guotai Jun'an Securities executive investigated

By Winny Wang  |   2009-6-6  |     NEWSPAPER EDITION

AN executive at Guotai Jun'an Securities (Hong Kong) Ltd is reportedly being investigated in relation to a corruption case involving the former chief executive of China Galaxy Securities.

It is not clear why Fan Xiaowei, 30, an executive director of the investment bank department, is being investigated, but Caijing Magazine quoted a source familiar with the case as saying Fan was involved in the case of former China Galaxy Securities CEO Xiao Shiqing.

Fan - a son of a former official at the China Securities Regulatory Commission, according to Caijing - graduated from the Harbin Institute of Technology and then earned a master degree in finance. He worked at HSBC in Hong Kong before joining Guotai Jun'an in 2005.

Xiao, 45, was arrested in Henan Province, according to a notification sent to the China Securities Regulatory Commission by prosecutors.

Xiao resigned from his post and has been held in custody since the end of April. The arrest of Xiao is said to be connected with the case of Wang Yi, a former vice chairman of the commission and vice president of China Development Bank, according to Caijing.

Wang, who was in charge of funds and other business at the commission from 1995 to 1999, was arrested in January on charges of bribery and corruption. He allegedly took advantage of his positions to benefit a relative's business.

He had reportedly confessed to accepting bribes totaling more than 10 million yuan (US$1.5 million).