Graft Watchdog Probes More Executives at China’s Biggest Bank
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Xu Yanfeng, a vice president of ICBC’s Shanghai municipal branch.
At least three senior executives at local branches of Industrial and Commercial Bank of China Ltd. (ICBC) (601398.SH) (中国工商银行股份有限公司) have recently been placed under investigation for suspected corruption, as the government presses on with its anti-graft campaign in the financial sector.
Xu Yanfeng, a vice president of ICBC’s Shanghai municipal branch, is being investigated for suspected “severe violations of (Communist Party) discipline and law,” China’s top anti-graft watchdog announced Thursday, using a phrase that is normally taken as a euphemism for corruption.
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- At least three senior executives of ICBC, including Xu Yanfeng, are under investigation for suspected corruption.
- The investigations are part of China's broader anti-graft campaign in the financial sector.
- Xu's probe may be related to financing activities at ICBC's Liaoning provincial branch and potential involvement with fraudulent schemes and troubled firms.
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Who’s Who
- Industrial and Commercial Bank of China Ltd. (ICBC)
- Industrial and Commercial Bank of China Ltd. (ICBC), known as 中国工商银行股份有限公司 in Chinese, is one of the largest banks in China. It has recently faced scrutiny as three senior executives from its local branches are under investigation for suspected corruption. The executives include Xu Yanfeng, a Vice President of the Shanghai branch, with investigations linked to his past roles in Liaoning province and financing activities related to troubled companies like Liaoning Zhongwang Group Co. Ltd.
- Liaoning Zhongwang Group Co. Ltd.
- Liaoning Zhongwang Group Co. Ltd. was once one of Asia’s largest aluminum extrusion product manufacturers. In 2019, the company faced scrutiny for fraudulent financing and related-party transactions, leading to a bankruptcy restructuring in 2022. Its parent company, China Zhongwang Holdings Ltd., was delisted from the Hong Kong stock exchange in 2023.
- China Zheshang Bank Co. Ltd.
- China Zheshang Bank Co. Ltd. (601916.SH) is one of the financial institutions mentioned in the article, which local branches of ICBC's Xiangyang branch raised 13.2 billion yuan ($2.1 billion) from through the issuance of fraudulent wealth management products between 2014 and 2016. The funds were then invested in various companies, primarily based in Xiangyang, but also included a mining firm in Benxi, Liaoning.
- China Citic Bank Corp. Ltd.
- China Citic Bank Corp. Ltd. is one of the banks involved in a fraudulent fundraising scheme orchestrated by ICBC’s Xiangyang branch. From 2014 to 2016, it raised part of the 13.2 billion yuan ($2.1 billion) through the issuance of fraudulent wealth management products, which were invested in companies in the real estate and investment sectors, including a mining firm in Benxi, Liaoning.
- Ping An Bank Co. Ltd.
- Ping An Bank Co. Ltd. was implicated in a fraudulent fundraising scheme. Between 2014 and 2016, the Xiangyang branch of ICBC raised 13.2 billion yuan ($2.1 billion) from Ping An Bank, China Zheshang Bank, and China Citic Bank through the issuance of fraudulent wealth management products. The funds were invested in various companies, including a mining firm in Benxi, Liaoning.
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What Happened When
- 2012：
- Xu Yanfeng was appointed president of ICBC’s Benxi city branch in Liaoning.
- 2014：
- Xu Yanfeng became an assistant to the president of the Liaoning provincial branch.
- From 2014 to 2016：
- ICBC’s Xiangyang branch raised 13.2 billion yuan from local branches of three banks through the issuance of fraudulent wealth management products.
- 2015：
- Xu Yanfeng was appointed a vice president of the Liaoning provincial branch.
- 2019：
- Wrongdoing aimed at inflating Zhongwang Group’s performance came to light.
- 2020：
- Xu Yanfeng was a candidate to become president of another provincial branch but missed out because he was reported for possible wrongdoing.
- 2022：
- Xu Yanfeng became a vice president of the Shanghai branch. A bankruptcy restructuring for Zhongwang Group was initiated.
- 2023：
- The shares of China Zhongwang Holdings Ltd., Zhongwang Group’s Hong Kong-listed parent, were delisted.
- June 2024：
- Ying Weiyun, a vice president of ICBC’s Beijing municipal branch, was put under a graft probe.
- July 10, 2024：
- An investigation into Wu Ningfeng, a former president of ICBC’s Inner Mongolia provincial-level branch, was announced.
- July 15, 2024：
- Xu Yanfeng was taken away by authorities.
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