China’s top financial regulator Li Yunze demoted amid disciplinary probe

BEIJING: China’s top financial regulator Li Yunze has been demoted over a suspected disciplinary violation, sources familiar with the matter said, in the latest move in Beijing’s ongoing crackdown on the financial sector.

Li, 55, headed the National Financial Regulatory Administration (NFRA), overseeing thousands of financial institutions including banks, insurers and trust firms across China’s vast financial system.

Sources said Li would be reassigned to a mid-level role within the regulatory body. They declined to be named due to the sensitivity of the matter.

Chinese authorities, including the Communist Party’s Organisation Department and the State Council Information Office, did not immediately respond to requests for comment. Li could not be reached.

The development comes as China intensifies efforts to tighten oversight of its financial industry amid economic headwinds, including a prolonged property sector crisis and slowing growth.

Li’s last known public appearance as NFRA chief was on April 22, when he attended a meeting in Beijing on strengthening efforts to curb illegal financial activities, according to an official statement.

The move follows recent action against other senior officials. State media last week reported that Zhou Liang had been removed as NFRA deputy head after being placed under investigation for suspected violations of law and discipline.

In recent years, Beijing has stepped up a sweeping anti-corruption drive targeting the financial sector, focusing on regulatory control and what officials describe as misconduct and excess within the industry.

In September, China’s anti-graft watchdog said it had launched an investigation into Yi Huiman, who had earlier been removed from his post as head of the securities regulator.

Li was appointed head of the NFRA in May 2023, shortly after the regulator was established as part of a broader government overhaul to strengthen financial supervision.

Before that, he served as vice governor of Sichuan province and spent more than two decades working in China’s state banking sector.