Petty Official, Giant Greed: Former CSRC Division Chief Hoards 3 Tons of Cash, 300 Million Yuan

Gold illustration.(Chen Bozhou/Dajiyuan)

[People News] On August 15, former director of the Issuance Supervision Department IV of the China Securities Regulatory Commission (CSRC), Yang Jiaohong, was expelled from the Communist Party. Four days later, on August 19, mainland Chinese media revealed shocking details of his corruption: after his downfall, investigators discovered 200–300 million yuan (approx. 28–42 million USD) in cash at his home.

According to Caixin, jrj.com.cn, and other outlets, the seized cash weighed about 3 tons. Yang reportedly lived extravagantly, often on golf courses, and his skills had nearly reached top amateur levels.

Yang joined the CSRC in 1998, serving long-term in the Issuance Department, and was considered one of the most experienced and professional division chiefs. In 2016, Yang suddenly resigned, citing his father’s illness, but was never seen working publicly in finance again, apart from rumours of joining a private equity fund.

In late October 2024, Caixin exclusively reported that Yang was under investigation, but no further news followed. On August 15, the Jiangsu Provincial CCDI in Suqian unexpectedly announced his expulsion from the Party.

The notice said Yang used his position—and later the influence from his past authority—even after resigning, to subscribe to pre-IPO shares, making him a textbook case of “resignation-to-escape-investigation” corruption. He used “white gloves” (proxies) and “shadow shareholders” to dodge scrutiny, colluded with others, destroyed and concealed evidence, resisted investigation, illegally accepted gifts and shopping cards, and used “sudden-shareholdings” to buy pre-IPO stock, reaping massive illicit gains.

Commentators note that the Issuance Supervision Department is one of the CSRC’s most powerful units, holding life-or-death authority over A-share IPO approvals.

Some financial bloggers said that during his years in the Issuance Department, Yang became a “King of Hell” for companies seeking IPOs—his stroke of a pen could decide a company’s fate. Investment banks scrambled to invite him to lecture, and attendees took notes more diligently than for the college entrance exam.

Over his 20+ years at the CSRC, Yang amassed illicit wealth over 300 times his legal annual salary, exposing the deep-rooted rent-seeking problem in China’s IPO review process. The CSRC has already seen multiple officials fall to corruption probes.

Reportedly, Yang’s home was so stuffed with yuan banknotes that they had begun to mildew. Netizens mockingly nicknamed him the “Three-Ton Division Chief,” saying he had set a new record for “petty official, giant greed.”

Online reactions:

“Shocking—giant rats everywhere.”

“Give me back the money I lost in stocks.”

“Most experienced in IPOs turned into most experienced in corruption. This monster should be executed immediately!”

“How many retail investors became paupers because of this man? He should apologise and compensate them!”

“This is where 80% of investors’ losses went!”

“Corrupt officials deserve execution! Execution would still be lenient!”

“Now I know who I lost my money to in the stock market!”

“And these thieves still get high pensions after retirement!”

“Abolish the current RMB and issue new notes so corrupt officials’ cash hoards become worthless.”

“Set a 2-month exchange window for new notes, investigate all suspicious funds during that period.”

“So many ‘talents’ in officialdom—how did they climb up? Reflection is needed!”

“Dig deeper into CSRC directors and above, clean up the stock market once and for all!”

“None of them can escape if you truly investigate!”

Yang is not the only “small official with huge greed.”

In 2020, Shanxi Provincial Financial Regulatory Bureau’s former Party Secretary and Director, Jing Hui, was found with 400 million yuan in cash, weighing over 2 tons.

In May 2014, Wei Pengyuan, deputy director of the National Energy Administration’s Coal Department, was investigated, and 200 million yuan in cash (1.15 tons) was found at his home. Prosecutors had to borrow 16 cash-counting machines from a Beijing bank branch—four machines burned out on the spot. Wei was later sentenced to life imprisonment with reprieve.

(First published by People News) △