Nov 03, 2020 05:32 PM

Former Shanghai Pudong Development Bank Executive Falls Under Probe

What’s new: Mu Shi, a former vice president at Shanghai Pudong Development Bank Co. Ltd. (SPDB), has been placed under investigation, possibly due to a privately offered fund business connected to his wife, who is also being probed, sources close to the lender told Caixin.

Mu, 59, is being investigated for “serious violation of (Communist Party) discipline and law,” Shanghai’s corruption watchdog said in a statement (link in Chinese) Monday.

What’s the background: Mu worked for the bank from 2000 to 2017. Around 2015, the Shanghai government offered Mu a leadership position at a local state-owned enterprise, but he refused and was subsequently criticized by the government, two knowledgeable sources told Caixin.

In June 2017, Mu resigned from SPDB to join a financial subsidiary of Dalian Wanda Group Co. Ltd. as a vice president.

In an investigation the same year, SPDB’s branch in Chengdu, Sichuan province, was found to have covered up bad loans. The branch was fined 462 million yuan ($69 million) over the fraud in January 2018. Mu in June 2019 received a warning (link in Chinese) and was fined 300,000 yuan for failing to properly supervise the branch.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Related: Shanghai Pudong Development Bank Fined $72 Million for Illegal Loans

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