Bad Business at a ‘Bad Bank’

* Lai Xiaomin is first senior executive at a state-owned financial giant to fall under investigation since the latest government overhaul further strengthened the power of nations top graft-buster

* China Huarong Asset Management Co. Ltd.’s risky business endeavors and ambiguous ties with private borrowers has sparked controversy

(Beijing) — Lai Xiaomin rose to prominence by overseeing breathtaking growth at one of China’s “Big Four” distressed-asset managers. Now, his fall has exposed the murky entanglements of China Huarong Asset Management Co. Ltd., one of the “bad banks” established to clean up soured loans in the country’s banking industry.