Authorities in mainland China arrested two prominent figures in the financial sector within a few days in the midst of an ongoing anti-corruption campaign.
Yesterday, Chinese authorities arrested Liu Liange, ex-Bank of China party secretary and chairman, over bribery charges, according to state media reports.
He was removed as the state-owned lender’s party chief in February and resigned from his chairman role in March this year before an investigation was launched against him by the Central Commission for Discipline Inspection (CCDI), China's top anti-graft watchdog.
The 62-year old veteran joined Bank of China in 2018 and served as governor and vice chairman before being promoted to chairman in 2019. Previously, he also held senior positions in China's central bank and the Export-Import Bank of China.
Two in a Week
On October 12, former Everbright Group chairman Li Xiaopeng was arrested over corruption charges. This occurred days after he was kicked out of the Chinese Communist Party and a probe was launched in April.
While the anti-corruption campaign in China’s financial sector has been ongoing, the short period in between the two latest prominent arrests is noteworthy.
Other Names
There are numerous other prominent figures who have been named in the campaign. Ex-China Life chair and party chief Wang Bin was sentenced to life in prison for corruption charges last month after his arrest in September 2022. Ex-China Merchants Bank president Tian Huiyu was charged with bribery and insider trading in February following his arrest in October 2022.
There are still others who haven’t been charged or arrested but are reportedly under investigation including ex-Shanghai Stock Exchange deputy general manager Liu Ti. China Renaissance chairman and CEO Bao Fan’s whereabouts remain unknown since February, though statements have been issued claiming that he is cooperating in an investigation with Chinese authorities.
Anti-Corruption Campaign
In recent years, Beijing has ramped up its anti-corruption campaign in various areas, including the financial sector. In 2021, it made a rare use of capital punishment for economic crimes via the execution of ex-Huarong Asset Management chairman Lai Xiaomin over bribery, corruption and bigamy charges.
Huarong is one of the four state-owned bad debt managers set up after the Asia financial crisis to take over distressed assets. The former general manager of its Beijing branch, Huang Xianhui, is also under investigation for suspicions of violations.
In 2022, Chinese regulators said they punished banks and insurers 4,620 times while issuing 7,561 penalties to officials, up 19 percent and 26 percent, respectively.
