China's securities regulator convenes top level meeting

Does the Wang Xiaoshi case damage the CSRC''s most precious asset: its integrity?

Local media reported this week that the country's security regulator has convened a high level meeting to discuss the fall out of the Wang Xiaoshi case. The case concerns the eponymous CSRC official who sold the names of committee members who vote on share issuance applications to a textile company last year.

The official, who has already been arrested, is also suspected of taking bribes in the case of a company wanting to issue a convertible bond. Despite the controversy surrounding the CSRC's efforts to reform the securities market, the latest scandal is a first and could thus be uniquely damaging according to some market observers.

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