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Galaxy Securities CEO under arrest

THE former chief executive officer of China Galaxy Securities has been arrested in Henan Province, according to a notification sent to the China Securities Regulatory Commission by prosecutors.

Xiao Shiqing, 45, has resigned from his post and has been held under custody since the end of last month. The arrest of Xiao is said to be connected with the case of Wang Yi, a former vice chairman of China's top securities regulator and vice president of China Development Bank, Caijing Magazine reported yesterday.

Xiao took over Galaxy Securities in 2007 after leaving the CSRC where he was the deputy head of several departments in the late 1990s. From 1995 to 1999 he was deputy head of the department that supervised listed companies headed by Wang, according to the magazine.

Wang was arrested by the police in January on charges of bribery and corruption. Wang had been in charge of funds and other business at the CSRC from 1995 to 1999 and had taken advantage of his positions to benefit his relative's business. Wang had reportedly confessed to accepting bribes totaling more than 10 million yuan (US$1.5 million), according to previous media reports.

The investigation into Xiao came as a shock to industry insiders as he was expected to return to work at the CSRC this year, Caijing said.

Galaxy Securities, in which state-run Central Huijin Investment Ltd owns 99.9 percent, is one of China's largest and oldest securities firms.

Meanwhile, SinoLink Securities said a statement to the Shanghai Stock Exchange last Thursday that its Chairman Lei Bo was also under investigation. The Chengdu-based firm said Lei, who formerly worked as a secretary for Wang, was being investigated for personal reasons.


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