The worst kept secret in contemporary China is the role that corruption plays in the function and disfunction of public life. Take, for example, Zhang Shuguang, the former deputy chief of engineering for China’s Railway Ministry.
The U.S. Securities and Exchange Commission’s anti-bribery unit is investigating whether JPMorgan Chase & Co. hired the children of Chinese officials to help its business, The New York Times reported, citing a confidential government document.
China removed the head of the agency that supervises state-owned assets, pushing ahead with a corruption probe targeting the highest-profile official since the Communist Party began an anti-graft campaign in November.
China’s Ministry of Railways removed Zhang Shuguang as deputy chief engineer and is investigating him for alleged “severe violation of discipline,” Xinhua News Agency said, in the second probe of an official from the ministry in a week.
China’s state-owned railroad is increasing debt sales by 50 percent, driving yield premiums on its bonds to the highest levels in more than six months, as the world’s biggest high-speed network is rolled out.
China punished 54 officials and ordered the railway ministry to improve management of its high- speed rail system after a government investigation found a fatal train crash was caused by mismanagement and design flaws.
China pledged to fix design flaws blamed for a high-speed rail crash last July and punish the officials responsible, as the government released the results of an investigation that sought to allay criticism of how the accident was handled.
China’s stocks fell, driving down the benchmark index by the most in a week, on concern higher material prices will fuel inflation and the nation’s tightening policies are slowing the world’s second-biggest economy.