The Henan police have detained Xiao Shiqing, former president of Galaxy Securities, in connection with a graft investigation.

The local police have also cordoned off Xiao's office and his house in Beijing, according to reports. Officers of the Henan justice department took Xiao into custody on May 13.

"He was taken into custody in Henan instead of Beijing to avoid potential influencing," said Fu Yong, a lawyer from Dacheng Law Office.