Caixin
Mar 02, 2021 08:40 PM
FINANCE

Ex-Chair of State-Backed Asset Manager Punished for Alleged Corruption

What’s new: Tao Xiaofeng, a former chairman of Huida Asset Management Co. Ltd., a state-owned asset manager, has been expelled from the Communist Party and removed from public office for alleged corruption and bribery, the country’s top anti-graft watchdog said (link in Chinese) Monday.

Tao was accused of taking bribes and embezzling the company’s funds for personal consumption, according to an official statement. The case has not been tried in court. The watchdog announced (link in Chinese) in late 2019 that he had been under investigation.

The context: Founded in 2005, Huida was set up mainly to dispose of nonperforming assets within the People’s Bank of China (PBOC). Although the company’s controlling shareholder is finance ministry-controlled China Cinda Asset Management Co. Ltd., one of the country’s four largest distressed-asset managers, it is directly supervised by the PBOC.

Born in 1965, Tao served at the PBOC for 27 years before going to work for Huida in 2012. He was appointed Huida’s chairman in 2018 and its Communist Party chief the following year.

Related: Ex-Boss of China’s Biggest Policy Bank Sentenced to Life for Bribery

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

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and Marcus Ryder (marcusryder@caixin.com)

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