In the past week, the China Securities Regulatory Commission, the country's top securities watchdog, has instructed brokerage and fund-management firms across the country to examine their bond-trading books for irregularities.

WSJ: China Probe Focuses on Trading of Bonds

But it's also because the China Securities Regulatory Commission has dramatically boosted its oversight capacity as the market has developed.

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Mr Shang's former job running the China Securities Regulatory Commission goes to Guo Shuqing, who until recently was chairman of China Construction Bank, a giant state-controlled bank.

ECONOMIST: China??s financial regulators: All change | The