China’s financial crackdown: Here are the most prominent bankers ensnared

BEIJING – The Chinese authorities have told the nation’s top banking executives to

expect a deeper corruption crackdown on the US$60 trillion (S$79.7 trillion) financial sector.

At least 20 financial executives have been probed or penalised since late February. Here are some of the most high-profile cases in recent years:

Liu Liange, Bank of China

Mr Liu, who was removed from his role as Bank of China’s party chief in February, is suspected of “serious violations of discipline and law”, the Central Commission for Discipline Inspection said in a one-sentence statement last week.

Little details are known about the probe into the former chairman, which marks the first time in decades that a top executive at one of China’s “Big Four” state-owned banks has been investigated.

Wang Bin, China Life Insurance

Wang was prosecuted by the People’s Procuratorate of Jinan in January after a probe into allegations of bribery and concealed offshore deposits. He was placed under investigation in January 2022, and later expelled from the Communist Party and arrested.

China’s anti-graft agency had accused the former chairman of China Life Insurance of refusing to implement policies that could prevent financial risks, and of intervention in market activities.

Fan Yifei, People’s Bank of China (PBOC)

The deputy governor of China’s central bank was placed under investigation by the anti-graft agency in November for “suspected severe violations of discipline and laws”. Although no statement or announcement was made by the PBOC, Mr Fan’s name is no longer on the list of top executives on the bank’s website.

Cai Esheng, former banking regulator

Cai was prosecuted in June last year on

charges of taking “huge” bribes and abuse of power.

Before his retirement in 2013, the former vice-head was in charge of supervising non-bank financial institutions, including trust firms and bad-debt managers such as China Huarong Asset Management.

Hu Huaibang, China Development Bank

Hu was sentenced to life imprisonment in early 2021

on charges of corruption. He was found guilty of taking bribes totalling 85.5 million yuan (S$16.5 million) during his tenure at China’s largest policy bank between 2009 and 2019.

A China Central Television report in 2018 said the former chairman helped to facilitate a US$4.8 billion credit line to now-failed conglomerate CEFC China Energy.

Lai Xiaomin, China Huarong Asset Management

Lai was sentenced to death and executed in early 2021

in one of the most severe penalties in China’s anti-corruption drive. Charges against the former chairman included taking 1.79 billion yuan of bribes during 2008 and 2018. Lai was found guilty of corruption as well as bigamy.

Lai oversaw China Huarong from 2012 until he was placed under probe in 2018. The company, one of four bad-debt managers set up in 1999 to help clean up China’s banking system, had deviated from its mandate under Lai and later received a US$6.6 billion government-orchestrated bailout. BLOOMBERG