Beijing has reportedly warned officials in the Communist Party against investing in private equity, as part of an ongoing anti-corruption campaign.
Chinese Communist Party officials were warned against investing in private equity to avoid situations with risk of corruption, according to media reports citing a book published by the Central Commission for Discipline Inspection (CCDI), the country’s top anti-graft watchdog.
The report notes that party officials were found to be in various comprising situations. Some, for example, set up PE funds after learning about key information regarding companies seeking listings and made «huge gains» from IPOs. In other cases, financing support was provided to firms that were indirectly owned and secretive channels for bribery were formed.
In recent years, China has been ramping up its anti-corruption campaign in various areas, including the financial sector. In October, ex-Bank of China chairman Liu Liange was arrested just days after the arrest of former Everbright Group chairman Li Xiaopeng.
