China’s most-wanted fugitive, an official accused of embezzling more than $40 million, is in U.S. custody, according to the Communist Party’s anti-graft agency.

Yang Xiuzhu, who fled China in 2003, was detained after entering the U.S. using a fake Dutch passport last year, according to the party’s Central Commission for Discipline Inspection.

In the first confirmation of Yang’s whereabouts in a decade, the commission’s International Cooperation Department said she escaped from detention in the Netherlands in May 2014 - - after being rejected for political asylum and before she could be sent back to China.

Eoin Treacy's view

Considering the vast sums of money that change hands within state owned organisations my first reaction to this news was “Is that all?” $40 million might sound like a lot of money but is in fact very little when one thinks about the personal and family wealth accrued by the ruling cadres.

Nevertheless this is a PR coup for the Chinese administration. China’s anti-corruption chief and Politburo member Wang Qishan announced in March he will be visiting the USA this summer. Following today’s news we can now put that visit in a wider context. The Party wishes to throw media attention on members who have absconded with millions of Dollars while ensuring that the process of internal reform sustains the status quo.

Today’s downside key day reversal on China suggests at least a near-term peak. It’s the biggest downward dynamic since the rally got started and suggests that even if it were to continue it will do so at a much slower pace. A Mid-Point Danger Line stop in the region of 4500 would be appropriate following today’s announcement that margin requirements are being tightened to slow the pace of the advance.

Additional volatility is also a possibility ahead of MSCI’s decision, expected June 9th, on whether A-Shares will be admitted to the MSCI Emerging Markets Index. This additional article may also be of interest.