Fang Xinghai Under Investigation as China’s Financial Sector Purge Deepens

Former China Securities Regulatory Commission (CSRC) Vice Chairman Fang Xinghai, who earned a Ph.D. in economics from Stanford University, has come under investigation. Fang decided to return to China years ago after being persuaded by a remark from former Chinese Premier Zhu Rongji, according to reports. 

Later, however, when he applied for permission to take a job overseas, his request was reportedly rejected by the Central Organization Department of the Chinese Communist Party (CCP).

The CSRC, where Fang served, has also reportedly been hit by a sweeping purge, with several officials—including former CSRC Chairman Yi Huiman—becoming embroiled in investigations or disciplinary actions.

Fang Xinghai under investigation; returned to China after Zhu Rongji’s encouragement

On the evening of July 24, 2026, China’s Central Commission for Discipline Inspection (CCDI) and the National Commission of Supervision announced that Fang Xinghai, former vice chairman of the CSRC, was under disciplinary review and supervisory investigation for allegedly committing “serious violations of discipline and the law,” the standard official formulation used in corruption investigations.

Notably, the investigation into Fang is being conducted directly by the CCDI. China’s state-run Xinhua News Agency confirmed this but did not disclose any specific details regarding the allegations or the circumstances of Fang’s case.

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According to publicly available information, Fang Xinghai is 62 years old and a native of Yueqing, Zhejiang Province. While studying at Tsinghua University, Fang attended lectures given by Zhu Rongji during Zhu’s tenure at the former State Economic Commission on multiple occasions. He later earned a Ph.D. in economics from Stanford University in the United States. After graduation, he worked at the headquarters of the World Bank as an economist and investment officer.

In August 1998, Fang Xinghai was invited by then-President of the China Construction Bank, Zhou Xiaochuan, to return to China, where he served as director of the Office of the China Construction Bank Group Coordination Committee. He later held a series of positions, including member and secretary-general of the management committee of China Galaxy Securities, deputy general manager of the Shanghai Stock Exchange, and director of the Shanghai Financial Services Office.

In his own writings, Fang Xinghai specifically mentioned that another factor behind his decision to return to China was Zhu Rongji’s “call” for overseas Chinese scholars to come back. According to accounts, in 1997, then-Chinese Vice Premier Zhu Rongji remarked while meeting foreign guests: “Why have none of my students come back?” Fang reportedly cited this as one reason for returning to China in 1998.

Fang Xinghai was a former Shanghai associate of Xi Jinping

It is noteworthy that Fang Xinghai was also a former Shanghai subordinate of Xi Jinping. From March to October 2007, Xi served as the Secretary of the Shanghai Municipal Committee of the Chinese Communist Party. In October of the same year, Fang was promoted to Deputy Secretary of the Shanghai Financial Work Committee and Director of the Shanghai Financial Services Office.

Previously, Hong Kong’s Economic Daily cited an unnamed source as saying that in March 2013, during the annual Two Sessions meetings of the Chinese Communist Party, Fang Xinghai—then head of the Shanghai Financial Services Office—submitted a letter to Xi Jinping, who had recently taken power, stating that he was willing to “contribute to the development of the country’s financial sector.”

According to the report, Xi then forwarded the letter to the government departments responsible for financial and economic affairs.

In May of the same year, Fang Xinghai was transferred to the Office of the Central Leading Group for Financial and Economic Affairs. In September, he became an inspector-level official in the Office’s Economic Affairs Group One. In 2014, he was appointed director of the International Economic Bureau (Bureau Four).

It was reported that the then-director of the Office of the Central Leading Group for Financial and Economic Affairs was Liu He, a close associate of Xi Jinping. After China’s stock market crash in 2015, Fang Xinghai was appointed vice chairman of the China Securities Regulatory Commission (CSRC), overseeing international affairs.

From October 2015 to July 2024, Fang served as vice chairman of the CSRC, where he was primarily responsible for areas including the international opening of China’s capital markets, international cooperation, and accounting and auditing supervision. In 2025, Fang became vice chairman of the Chinese Finance Society.

Fang Xinghai’s public praise of Xi Jinping at the Davos World Economic Forum

In January 2016, while attending the World Economic Forum (WEF) in Davos, Fang Xinghai said that China had a “strong and far-sighted leader” and publicly described Xi Jinping as “the best leader in the world.”

A video clip from Fang’s appearance at the World Economic Forum on Jan. 22, 2019, later circulated widely online. During a panel discussion with Western scholars present, Fang said that Western democracies had “major problems” and needed “political reform,” prompting laughter from the audience.

A professor from Columbia University sitting nearby also could not help laughing. Fang Xinghai responded, “I am serious.” The professor replied, “Yes, you really are serious.”

Source says: Fang Xinghai wanted to take overseas position, but CCP rejected his request

A report by The Wall Street Journal cited people familiar with the matter as saying that warning signs had emerged before Fang Xinghai was removed from his position. According to these sources, Fang had sought in recent years to take up a position at the World Bank headquarters in Washington, D.C. However, his application was rejected by the CCP Central Organization Department in 2025.

The sources said that, at the same time Fang’s request to work overseas was denied, Chinese authorities ordered him to submit a detailed written report on his personal career history. According to the sources, this type of procedure is sometimes applied specifically to Chinese officials who have already become involved in scandals or are under scrutiny.

In June 2026, Fang Xinghai attended the 17th World Economic Forum, held in Dalian, in his capacity as vice chairman of the Chinese Finance Society.

According to a report by Chinese financial media outlet Sina Finance, a closed-door seminar titled “Fever and Rationality: Development Risks and Governance Paths Amid the AI Industry Boom”, originally organized by the China Wealth Management 50 Forum, was scheduled to take place at 4 p.m. on July 25. 

Fang Xinghai’s name appeared on the agenda, and he had been scheduled to attend the event as a high-profile guest during the keynote discussion session. However, he was officially announced as having “fallen” (under investigation) by Chinese authorities at 8 p.m. on July 24.

Reports claim Fang Xinghai was involved in at least three major cases; allegedly had tensions with Yi Huiman

On July 25, 2026, an account on the X platform called “Asia Finance” posted that Fang Xinghai’s detention was expected, claiming that he was involved in at least three major cases. 

First alleged interests linked to IPO approvals during Yi Huiman’s tenure. During the five years when Yi Huiman served as CSRC chairman, more than 1,900 A-share companies were listed. It alleged that there were significant transfers of 利益 (benefits) behind these listings, and that Fang Xinghai—who was Yi’s deputy and also a fellow native of Wenzhou—was connected to the process.

Second concerned allegations involving Harvest Fund Management Chairman Zhao Xuejun. It claimed that within China’s financial circles, there were rumors that Zhao Xuejun, chairman of Harvest Fund Management, had implicated Fang Xinghai during investigations.

Third alleged links with quantitative investment firms.

The “Asia Finance” post claimed that Fang had close ties with several quantitative investment institutions. It questioned where the money allegedly obtained by High-Flyer Quant (幻方量化) co-founder Liang Wenfeng through “harvesting retail investors” (a Chinese financial slang term meaning profiting at the expense of small investors) ultimately went. It also claimed that Li Cheng, former marketing director of High-Flyer Quant, had already been detained.

From January 2019 to February 2024, Yi Huiman served as Party Secretary and Chairman of the China Securities Regulatory Commission (CSRC). From October 2015 to July 2024, Fang Xinghai served as vice chairman of the CSRC, making him Yi’s deputy. The two worked together for five years and were both from Wenzhou, Zhejiang, but reports claimed that their relationship was strained.

According to Chinese media outlet Caixin, Fang Xinghai and Yi Huiman were described as “one Western-oriented and one traditional” figures, with tensions between them. On one occasion, the CSRC held an industry meeting, after which participants and senior CSRC officials had a meal together in the cafeteria. During the meal, Fang reportedly approached Yi and proactively mentioned that he would be traveling to a certain location for work, hoping to use the opportunity to start a conversation. However, Yi allegedly “completely ignored” Fang and continued “chatting and laughing with others.” Fang was reportedly left with no choice but to pick up his tray and leave awkwardly, creating an uncomfortable scene.

The report also said that when Fang Xinghai was overseeing the CSRC’s important Issuance Department, he believed that the department’s review standards were too rigid and personally participated in the review process. During an internal discussion, Fang reportedly questioned some of the department’s approval criteria, saying: “Even I, a Stanford Ph.D., have never heard of these standards.”

Such remarks reportedly intensified disagreements between Fang and Guo Xudong, then deputy director of the Department of Issuance Regulation.

In October 2025, Guo Xudong reportedly “voluntarily surrendered” himself to authorities following controversies involving his post-retirement activities.

It was also reported that the Ant Group IPO, which had planned to raise US$30 billion and achieve a market valuation of US$200 billion, was approved while Fang Xinghai was overseeing the issuance department. The report claimed that Fang wanted to create the world’s largest IPO project and was more actively involved in Ant Financial’s listing than investment banks, personally accompanying Ant’s team to various meetings and negotiations.

However, on Nov. 3, 2020, just one day before Ant Group was scheduled to list on the Shanghai Stock Exchange, the IPO was abruptly suspended.

CSRC allegedly faces a ‘complete purge’

The China Securities Regulatory Commission (CSRC) has reportedly been experiencing increasing turbulence since last year.

In March 2025, Wang Huimin, former head of the Discipline Inspection and Supervision Team stationed at the CSRC by the Central Commission for Discipline Inspection (CCDI) and the National Commission of Supervision, was placed under investigation. He was formally indicted in April 2026.

In April 2025, former CSRC Vice Chairman Wang Jianjun was placed under investigation, and he was formally indicted in March 2026. Fang Xinghai became the second former CSRC vice chairman in recent years to fall from power.

On Sept. 6, 2025, former CSRC Chairman Yi Huiman was investigated. On April 30, 2026, Yi Huiman was expelled from the Chinese Communist Party (CCP) and removed from public office. His qualification as a delegate to the 20th CCP National Congress was terminated, and his case was transferred to prosecutorial authorities for review and prosecution.

Analysis: Xi demands ‘political loyalty’; technocrats face purges

According to a report by The Wall Street Journal, Fang Xinghai was widely regarded as one of the few senior officials capable of calming China’s frequently volatile financial markets. The credibility of his public assurances came from the fact that he had a deep understanding of the mechanisms he was describing.

The Wall Street Journal reported that, in recent years, a number of Chinese Communist Party officials associated with pro-market policies and technocratic economic policymaking have been purged. This was part of a broader process in which economic decision-making authority has become increasingly concentrated around Xi Jinping and his most loyal allies.

The developments have raised questions over whether professional expertise still matters in a system increasingly centered on “political loyalty.” Fang’s previous attempt to take up a position at an international institution—and the Chinese government’s refusal to approve his departure—also highlighted a broader concern within the CCP: that some of the country’s most capable economic officials may prefer to work elsewhere rather than remain in China.

Independent commentator Cai Shenkun, who is based in the United States, wrote on the X platform that overseas-educated returnee Fang Xinghai had been ruthlessly crushed by the CCP’s “political meat grinder.” Cai said this served as a major warning to technology elites who had proudly chosen to return to China. He added that people only feel the impact when the blow reaches them personally, but under the CCP system, there is no certainty over whose head the next heavy blow will fall.