Zhang Yujun, an assistant chairman at China Securities Regulatory Commission (CSRC), is under investigation for "severe violation of the laws and disciples," the Central Commission for Discipline Inspection announced on Wednesday.

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Although the commission's statement did not give any details of the crimes Zhang is suspected to have committed, many experts speculate his arrest is connected to the country's stock market crisis.

Zhang has worked with the commission for about two decades. Between 2000 and 2012, he worked as the general manager for China's two main stock markets in Shanghai and Shenzhen.

China's stock prices have been unstable since June. Authorities have taken several steps to restore investor confidence, but the market rout continues. There were concerns that the illegal short selling of stocks by unscrupulous traders was the cause of the volatility. Police investigators later revealed that they had uncovered evidence proving that certain firms may have engaged in illegal short selling of stocks and stock indexes. The probe into market violations since stock prices started falling has claimed many victims besides Zhang.

In June, a top official in CSRC's stock issuance supervision department was dismissed after investigators found out that her husband was involved in illegal trading. China's stock regulatory body did not reveal the details of her case. However, the organization handed her to the police and vowed to prosecute her.

Last month, another employee of the CSRC was accused of taking bribes and using his position to enrich himself. Li Liang, the former chief of the CSRC's investor protection division, was summarily dismissed from his post. Authorities did not reveal the details of his case, but again vowed to prosecute him.

More recently, several high ranking employees of one of China's largest brokerage firms have been placed under investigation for allegedly engaging in insider trading of stocks. Among the CITIC Securities executives under investigation is the company's president Cheng Boming.

Experts say the recent crackdown on stock manipulation displays the commitment of Chinese authorities to create a free market. However, analysts have noted that the move may not immediately boost investor confidence in the country's stock market.

TagsZhang Yujun, China Securities Regulatory Commission (CSRC), China Stock Prices Plunge, China Stock Crisis, China Stock Volatility, Li Zhilinh, Li Liang, Citic Securities, Shanghai Stock Index, Shenzhen Stock Index