Three Tons of Cash Seized from Ex-IPO Regulator's Home
Yang Zhaohong’s Illicit Wealth Sparks Debate Over Endemic Corruption in China
An unprecedented corruption scandal has erupted in China after authorities seized an enormous amount of cash weighing three tons from the home of a former government official. The former official, who was responsible for reviewing initial public offerings (IPOs) on the Chinese stock market before resigning eight years ago, has drawn attention to the widespread corruption in China following revelations of his illicit wealth accumulation.
According to Chinese media outlets such as Caixin and Sina Finance on August 21, authorities recently stripped Yang Zhaohong, former Director of the Issuance Supervision Department at the China Securities Regulatory Commission, of his party membership following a disciplinary investigation. The investigation was conducted with the approval of the Central Commission for Discipline Inspection and the National Supervisory Commission of the Communist Party of China.
Local media reported that hundreds of billions of won worth of cash were found at Yang Zhaohong's residence, with so much money that it had even developed a moldy smell. Chinese netizens have nicknamed him the "Three-Ton Director" in reference to the weight of the seized cash.
Yang Zhaohong joined the China Securities Regulatory Commission in 1998 and was known as a key figure in the review of IPOs on the ChiNext board, often referred to as the "Chinese Nasdaq." His influence was so significant that a single word from him could determine whether a company would be listed, earning him the nickname "Living King of Hell" at one point.
He voluntarily resigned in 2016 citing personal reasons, but investigations found that he used his former position to amass a fortune by purchasing unlisted shares of companies preparing to go public. After leaving public office, he reportedly led a lavish lifestyle and was frequently seen at golf courses.
Local media pointed out that this is a textbook case of a so-called "runaway resignation," where an official leaves their post and secretly accumulates wealth by leveraging their former power.
This case is considered one of the most significant corruption scandals in China's history. The revelation that a mid-level official, rather than a top executive, was able to amass such an enormous illicit fortune has reignited debate over the pervasive corruption within China.
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