China Reels from Record Corruption Allegations... 3 Tons of Cash Found at Ex-Official's Home

Key Figure in China's IPO Review Process Amassed Tens of Billions in Illicit Gains

Chinese Yuan [Reuters Yonhap News file photo. Reproduction and database prohibited.] 

An individual who was in charge of reviewing Initial Public Offerings (IPOs) on the Chinese stock market and resigned eight years ago has recently had their Party membership revoked and is under investigation by authorities.

It is reported that 3 tons of cash were seized from the former official's residence, a case considered to be one of the most significant corruption incidents in China's history.

According to Chinese media outlets such as Caixin and Sina Finance on the 21st, the authorities, with the approval of the Central Commission for Discipline Inspection and the National Supervisory Commission of the Communist Party of China, have revoked the Party membership of Yang Zhaohong, former Director of the Issuance Supervision Department at the China Securities Regulatory Commission (CSRC), and are conducting an investigation.

It is said that tens of billions of yuan in cash were discovered at his residence.

Local media reported that the sheer volume of cash was so great that it had a moldy smell.

The fact that a mid-level official, not a high-ranking one, accumulated such immense wealth illicitly has once again ignited controversy over the widespread corruption in China.

Chinese netizens are calling him "Director 3 Tons," referencing the weight of the cash seized.

Yang Zhaohong joined the CSRC in 1998 and played a pivotal role in the IPO review process for the ChiNext market, often referred to as China's Nasdaq. His word was reportedly enough to determine whether a company would be listed, earning him the nickname "Living Yama" (King of Hell) at one point.

After voluntarily resigning in 2016 citing personal reasons, he is under investigation for allegedly amassing vast sums by leveraging his former position to purchase unlisted shares of companies slated for IPO.

Chinese media outlets pointed out that his case appears to be a typical example of "flight resignation," where individuals use their power to covertly accumulate wealth after leaving public office. Yonhap News

After leaving public service, he is known to have enjoyed a lavish lifestyle, often seen on golf courses.