China

Ex-Bank of China Chairman Arrested Over Bribery, Illegal Loans

 

Chinese officials have arrested former Bank of China chairman Liu Liange on suspicion of bribery and the alleged handing out of illegal loans, state media reported on Monday.

Liu, 62, was arrested on the orders of the Supreme People’s Procuratorate, China’s main prosecutorial agency, according to a report by Xinhua.

The charges were framed following the conclusion of an investigation by National Commission of Supervision, Xinhua said.

 

Also on AF: China Detains Former AMC Fund Manager Wang Yawei

 

Liu had been under investigation by Chinese authorities since March over “suspected serious violations of discipline and law.”

Earlier this month, China’s ruling Communist Party also expelled Liu for “causing significant financial risks”.

Announcing the expulsion, the CCP’s top anti-graft watchdog had accused Liu of bringing prohibited publications into the country and illegally taking bribes.

The commission, Central Commission for Discipline Inspection (CCDI), also accused Liu of accepting entertainment at private clubs and ski resorts.

Liu worked in several in Chinese banking and finance institutions, including in the central People’s Bank of China and the Export-Import Bank of China, before taking a promotion as the chairman of the Bank of China in 2019.

He resigned from that position two weeks before the investigation into him began in March.

 

 

Liu is the latest influential Chinese figure from the $57 trillion financial industry to face scrutiny amid Xi Jinping’s signature anti-graft campaign.

As geopolitical tensions rise, the Chinese president has sought to thwart corruption in an effort to minimise national security risks within the government and within critical industries.

Early this year, the CCDI vowed to “seriously punish … corrupt elements” in “resource-rich, capital-intensive areas”. China’s Politburo restated that pledge in September, saying it was willing “to be extreme” to root out corruption.

The widespread crackdown on the financial sector has led to detentions ranging from star fund manager Wang Yawei to top dealmaker Bao Fan.

 

  • Reuters, with additional inputs from Vishakha Saxena

 

Also read:

 

China Vows Anti-Corruption Crackdown on Financial Sector

 

China Bans Top Nomura Investment Banker From Exiting Mainland

 

Missing China Banker Wanted to Move Wealth to Singapore – FT

 

China Bankers to Shun ‘High-End Taste’ Fearing Regulatory Ire

 

China Evergrande Chairman ‘Suspected of Crimes’, Company Says

 

Chinese Minister, ‘Mistress’, Rocket Chiefs All Missing – A/Sentinel

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

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