Fallen Hengfeng Bank Chairman Put Under Party Probe
Hengfeng Bank, a national commercial lender mired in an internal power struggle and embezzlement allegations since May 2016, has undergone a major reshuffle of top leadership.
Cai Guohua, chairman of Hengfeng Bank, was removed from his post and put under investigation for violations of party discipline, sources told Caixin. Wang Xiaoseng, head of the bank’s discipline inspection commission, was also removed from his post, the sources said.
Wang Hua, previously secretary general of the Shandong provincial government, has taken over the role as interim party secretary of Hengfeng Bank, the sources said. Wang Xifeng, previously party secretary and president of Bank of China’s Shandong branch, is now the new president of Hengfeng Bank, which owned 1.2 trillion yuan ($181.84 billion) in assets as of the end of 2016.
The decision was announced by the Shangdong provincial government in an internal meeting held on Tuesday afternoon, a gesture that suggests government intervention has been strong in this case, Caixin learned.
Hengfeng Bank, one of the country’s 12 national commercial banks, was put under the spotlight after an unnamed whistleblower accused Cai and others of misappropriating millions of yuan without approval from the board or shareholders.
The struggles heated up in December 2016, when the bank’s former president Lin Zhihong was unexpectedly removed by the bank’s board, which was tightly controlled by Cai.
Caixin earlier reported that top executives of Hengfeng Bank sought to use several companies to shield their control of the bank through complex shareholding structures, and embezzled 43 billion yuan during the process.
The country’s banking regulator once described Hengfeng Bank as a “typical example of unsound corporate governance,” and urged the regulatory body in Shangdong to tighten its supervision of the bank.
Hengfeng Bank’s second largest shareholder, Singapore’s United Overseas Bank (UOB), which holds a 13.18% stake, filed documents earlier in November to sell its entire stake.
Meanwhile local state-owned conglomerate Shandong Luxin Investment Holdings Group Co. has started its due diligence on Hengfeng Bank, as the local government intends to take over UOB’s stake through Luxin to secure the controlling stake of Hengfeng.
Contact reporter Leng Cheng (email@example.com)
Jun 05 23:57
Jun 05 17:06
Jun 05 13:20
Jun 04 17:45
Jun 04 17:19
Jun 04 16:26
Jun 04 12:38
Jun 03 18:07
Jun 03 16:48
Jun 03 13:17
Jun 03 12:25
Jun 03 06:45
Jun 02 16:29
Jun 02 14:45
- 1Update: China to Allow Banned Foreign Airlines to Resume Some Flights
- 2Luckin Founder to Cash Out of Rental Car Unit
- 3BNP Paribas Chinese Unit Fined for Anti-Money Laundering Violations
- 4Fighting Coronavirus: Policy Analysis and Practical Experiences
- 5TSMC Looks Homeward for New $10 Billion Chip Plant
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas