Zhu Ying, former deputy director of the Shanghai Municipal Public Security Bureau, has been expelled from the municipal discipline inspection committee of the Communist Party of China (CPC) , the local discipline watchdog said Tuesday.

The committee also denied reports in Chinese newspapers that Zhu had been detained.

The committee said in a statement that Zhu was stripped of his membership in the committee for disciplinary violations in connection with a financial scandal involving Chinese businessman Huang Guangyu.

The committee did not disclose details of Zhu's involvement in the scandal.

Huang, chairman of Gome, China's largest home appliance retailing chain was detained by Beijing police in November last year for allegedly manipulating share trading, a charge being investigated by the Ministry of Public Security. Huang owns a third of Beijing-based Gome with estimated assets of 43 billion yuan (6.3 billion U.S. dollars).

Zhu was appointed deputy director of the Shanghai Municipal Industry and Commerce Bureau in January.

Local media reports said Zhu's promotion to deputy police chief was supported by his connections with officials implicated in Huang's case.

China's Ministry of Public Security confirmed in January two officials in charge of economic crime investigations were suspected of graft during investigations into Huang's case.

They were Zheng Shaodong, who served as Assistant Minister of Public Security and director of the economic criminal investigation bureau, and Xiang Huaizhu, the bureau's deputy director.