China Financial Regulator Demoted as Graft Crackdown Widens

China financial regulator Li Yunze has been demoted over a suspected disciplinary violation, Reuters reported, citing people familiar with the matter, in the latest sign of Beijing’s widening crackdown on the financial sector.

Li, 55, headed the National Financial Regulatory Administration, which oversees banks, insurers and trust firms across China’s USD79tr financial industry.

Reuters said his name and photo were removed from the regulator’s leadership page.

Li was appointed NFRA head in May 2023 after the agency was created to strengthen oversight of the financial system.

The China financial regulator shake-up follows the removal of NFRA deputy head Zhou Liang and comes as the country’s financial sector faces pressure from a prolonged property crisis, slowing growth and heightened scrutiny of regulatory governance.