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Shanghai's disgraced former Communist chief Chen Liangyu has been expelled from the Party and handed over to judicial authorities, state media said on Thursday.

Chen Liangyu. [AP]

Chen was toppled last September in an official probe into the misuse of money in the city's social security fund.

The report said Chen's case had had a "very negative impact" on the image of the Communist Party, caused terrible loses to the state-owned sector and also accused him of being morally corrupt.

"He had poor morals and used his position to mess around with women. He exchanged power for sex and sheltered subordinates who seriously violated the law," state television reported.

"Chen Liangyu's behaviour seriously violated the discipline of the Party and caused great damage to the interests of the country and the people," it added. "It seriously tainted the image of the Party."

Chen will lose all his official posts, the report said, including his place in China's parliament.

The snowballing scandal implicated more than a dozen senior officials and businessmen.

Chen did not turn up in Beijing in March for the annual session of parliament.

Communist Party has vowed to take steps to root out corrupt officials ahead of a key meeting later this year.

"The war against graft is closely related to whether we win or lose the people's trust, the survival of the Party and the lasting stability of the country," state television said.

"The Party's tough probe and punishment of Chen Liangyu shows its strong determination to fight corruption."

Xi Jinping replaced Chen.