Shandong AMC Takes Over Hengfeng Bank

The government of eastern China’s Shandong province has taken control of Hengfeng Bank Co. Ltd., nearly four years after a state-backed bailout to revive the struggling lender marred by embezzlement scandals involving top management.

The Shandong-based joint-stock bank said in a statement that the National Administration of Financial Regulation has approved a deal in which Central Huijin Investment Ltd. — the domestic investment arm of sovereign wealth fund China Investment Corp. — sells 15 billion shares in Hengfeng Bank to Shandong Financial Asset Management Co. Ltd. (Shandong AMC), an investment vehicle owned by the provincial government.