Caixin
Jul 08, 2019 09:06 PM
FINANCE

Exclusive: Pudong Development Bank to Get New Chairman

View of a branch of Shanghai Pudong Development Bank in Ji'nan city, east China's Shandong province, 28 August 2016. Photo: IC Photoc
View of a branch of Shanghai Pudong Development Bank in Ji'nan city, east China's Shandong province, 28 August 2016. Photo: IC Photoc

Shanghai Pudong Development Bank Co. Ltd., one of China’s biggest joint-stock commercial banks, is going to have a new chairman.

Zheng Yang, director of the Shanghai Municipal Financial Regulatory Bureau, is likely to replace Gao Guofu as chairman of Pudong Development Bank, Caixin has learned from sources with knowledge of the matter.

Zheng, 52, took office as head of the financial regulatory bureau’s predecessor in 2013. Before that, he was a deputy head of the People’s Bank of China’s Shanghai Head Office, where he helped promote the development of cross-border yuan businesses.

Gao, 63, was appointed chairman of Shanghai-listed Pudong Development Bank in May 2017.

Xie Dong, 48, a deputy head of Shanghai’s financial regulator, is likely to take over from Zheng as head of the bureau, the sources said.

At the end of March, Pudong Development Bank had 6.5 trillion yuan ($951.8 billion) in total assets, ranking third among joint-stock commercial banks after China Merchants Bank Co. Ltd. and Industrial Bank Co. Ltd.

Last month, The Washington Post reported that a U.S. court found three Chinese banks in contempt for refusing to comply with subpoenas in a probe into violations of North Korea sanctions. The court didn’t identify the banks, but details in the court rulings align with a 2017 civil forfeiture case involving Pudong Development Bank, as well as China Merchants Bank and Bank of Communications Co. Ltd., one of the country’s “Big Five” state-owned commercial banks, according to the newspaper.

The report led the three banks’ stocks to slump and triggered concerns that the impact of the trade war between China and the U.S. could spread into the financial sector.

Zhu Liangtao and Hu Yue contributed to this report.

Contact reporter Lin Jinbing (jinbinglin@caixin.com)

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