Finance Movers and Shakers: Citic Bank’s New President, Former ICBC Executive’s Death Sentence

The newsletter "Finance Movers and Shakers" provides insights into significant personnel changes and corruption scandals within China's financial sector. [para. 1]

Lu Wei has been appointed as the new president of China Citic Bank Corp. Ltd., part of Citic Group Corp. Ltd. Lu succeeded Liu Cheng and brings over two decades of experience with the bank, which boasted total assets of approximately 9.5 trillion yuan ($1.3 trillion) at the end of the previous year. Prior to this appointment, Lu served as chairman of Citic Trust Co. Ltd. Lu's long tenure with Citic Bank highlights his extensive experience in the banking sector, positioning him as a key figure in steering the company's future direction. [para. 2][para. 3][para. 4]

Following his departure from Citic Bank, Liu Cheng has taken on the role of chairman at CSC Financial Co. Ltd., succeeding the retired Wang Changqing. Liu, who joined Citic Bank in 2018 after a lengthy career as a government official, became president of the bank in 2023. His background in government imbues him with a profound understanding of policy, which is a significant asset in the evolving financial landscape. Liu's ability to anticipate policy changes is noted as particularly valuable by his colleagues. [para. 5][para. 6][para. 7]

China Construction Bank Corp.'s (CCB) executive vice president, Li Yun, is slated to step into a new role as vice governor of Guangdong province. This move aligns with the practice of rotating financiers between state-owned institutions and government positions to enhance policy coordination. Guangdong has been a critical contributor to China's GDP for 36 consecutive years, indicating a dynamic and economically significant region. Li Yun's extensive experience, including over two decades at Agricultural Bank of China Ltd., positions him as an effective leader to oversee the financial sector in this vital area. [para. 8][para. 9][para. 10][para. 11]

In contrast to these leadership appointments, the newsletter also sheds light on corruption cases within the sector. Zhang Hongli, a former senior executive vice president of Industrial and Commercial Bank of China Ltd. (ICBC), has been sentenced to death with a two-year reprieve after accepting more than 177 million yuan in bribes from 2011 to 2022. Zhang's connections with other financial figures embroiled in corruption, such as Cong Lin, highlight the pervasive nature of graft in China's banking industry. [para. 12][para. 13][para. 14]

Further emphasizing the ongoing crackdown on corruption, Jiang Chaoliang, a former chairman of Agricultural Bank of China (ABC), is under investigation for suspected corruption. Jiang's career trajectory included significant roles in both banking and local government, with his time at ABC culminating in his appointment as chairman in 2011. The investigation into Jiang signifies the persistence of anti-corruption efforts targeting high-profile figures in China's financial sector. [para. 15][para. 16][para. 17][para. 18]

Overall, the newsletter captures the dynamic shifts in leadership within China's key financial institutions and underscores the persistent challenges posed by corruption. The personnel changes reflect a strategic alignment with government policies and the effort to maintain synergy between financial institutions and regulatory frameworks. Meanwhile, the corruption cases highlight ongoing challenges and the government's commitment to eradicating financial malfeasance. [para. 1][para. 18]