採訪/朱智善 編輯/陳潔 後製/李智遠
Former Head of China’s Top Economic Planner Investigated
Former finance department director of China’s National
Development and Reform Commission’s (NDRC),
Zhang Dongsheng, is under investigation in connection with
corporate bonds issued in 2005.
Zhang was said to be among a list of over 100 people given
by Sun Mingxia, former executive of Guosen Securities.
Sun was involved in a corruption probe last October.
On Aug. 13, Chinese financial news magazine Caixin reported
that last October police detained Sun Mingxia,
president of the fixed income division of Guosen Securities.
In detention, Sun provided investigators with a list of over 100
people, leading to investigations of a number of staff
in the NDRC’s finance department and the securities sector.
There are reports that Zhang Dongsheng
is now confirmed to be under investigation.
Temporary staff now run the NDRC’s finance department.
Zhang began his career at NDRC in 1982.
In 2003 he became head of the finance department,
and then head of replacement and income distribution in 2006.
While he was in charge of the finance department from 2003
to 2006, China was in a golden age of corporate bond issuance.
Sources say that Zhang is being investigated
in relation to corporate bonds issued in 2005.
The details of many more corruption cases in the bond market
could be revealed through this case.
Zhang Jian, China social issues researcher: “Sun Mingxia
gave a list of hundreds of corrupt officials after her downfall.
The list mainly targets the NDRC
and the entire Chinese banking system.
We know for a fact that the corruption in the banking system
is rooted in its monopoly by the government.
The government’s behavior has resulted in these companies
openly engaging in blackmail, extortion and money laundering.
The Chinese financial market is thus
faced with enormous risks."
The Chinese news website, The Paper, also reports that two
sources say Beijing prosecutors have begun the investigation
of Liu Zhiwen, former deputy director of the NDRC’s finance
department in Zhejiang Province about three weeks ago.
Sun had a major corporate bond projects in Zhejiang,
and observers believe the downfall of Liu is related to Sun.
The NDRC’s finance department is responsible for
approving and monitoring bond issuance, thus its potential for
power play in the sector is highly likely.
Frank Xie, professor at University of South Carolina Aiken:
“Similar issues are present not just in the bond market,
but also in stocks, real estate, trusts, and so forth.
Corruption is rampant in China today. It has existed for a long
time because of the one-party Communist dictatorship.
The Communist officials have been controlling the markets
such as stock, bond, housing, and the state-owned enterprises.
Those who are in charge of the judicial, legislative and
administrative are also the Communist officials.
They have created themselves the perfect environment
An anonymous Chinese broker revealed that the Central
Commission for Discipline Inspection (CCDI) is investigating
commercial bribery in major securities companies.
The opaque bond sector is the hardest hit,
and many brokers are being investigated.
On June 15, Wang Huimin, secretary of the China Securities
Regulatory Commission, conveyed the message delivered
by Wang Qishan, the secretary of CCDI, which seems
to show that the anti-graft efforts are unprecedented.
Zhang Jian suspects these sectors are involved giving support
to Jiang Zemin’s faction.
Zhang Jian: “I believe the NDRC and these finance sectors
have been a source of interest for Jiang’s faction.
The entire Jiang faction has occupied tremendous national
sources which were delivered by these finance sectors.
The Jiang faction had stretched its clutches into these sectors
and arranged a large number of their own connections."
Frank Xie: “If the anti-corruption campaign is done
thoroughly, ferreting out all the CCP’s corrupt officials,
the CCP will basically cease to exist.
If the probe is only done partially, it will certainly cause some
others to resist the campaign."
Xie says that the Chinese Communist regime itself is the
He says that when such power has no checks and balances,
then whether it’s the finance, bond, stock or trust markets,
these will only become the tool of those in power.
Interview/Zhu Zhishan Edit/ChenJie Post-Production/Li Zhiyuan