The Shady Deals Behind a Veteran Banker’s Suspended Death Sentence
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The recent suspended death sentence handed to a former chairman of an investment platform in China has cast a spotlight on the shady dealings that led to massive losses for one of the country’s 12 national joint-stock banks.
Wang Weihua, who was also president of Zheshang Industrial Integration, along with two former senior executives at China Zheshang Bank Co. Ltd. (CZB), was convicted last month of a scheme to steer bank loans to dozens of Zheshang Industrial’s partner firms, leaving the Shanghai- and Hong Kong-listed bank saddled with about 12.6 billion yuan ($1.7 billion) in bad assets, according to a court document exclusively obtained by Caixin.
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- Wang Weihua and two former China Zheshang Bank executives steered loans to partner firms, resulting in 12.6 billion yuan ($1.7 billion) in bad assets.
- The trio accepted nearly 340 million yuan in bribes as part of the scheme, according to court documents.
- Wang personally benefited from related real estate projects and was handed a suspended death sentence for his role.
- Zheshang Industrial Integration
- Zheshang Industrial Integration is an investment platform in China. Its former president, Wang Weihua, was involved in a scheme to steer bank loans to its partner firms, resulting in significant losses for China Zheshang Bank Co. Ltd. (CZB). Wang, along with former CZB executives, accepted substantial bribes. Wang helped establish Zheshang Industrial in 2017 after leaving CZB.
- China Zheshang Bank Co. Ltd.
- China Zheshang Bank Co. Ltd. (CZB) is one of China's 12 national joint-stock banks. Former CZB executives, including its ex-chairman Shen Renkang and an ex-vice president Zhang Changgong, were involved in a scheme to steer bank loans, resulting in 12.6 billion yuan in bad assets for CZB. They accepted nearly 340 million yuan in bribes.
- Industrial and Commercial Bank of China Ltd.
- Wang Weihua, sentenced to a suspended death penalty for financial crimes, spent over 20 years working at the Industrial and Commercial Bank of China Ltd. (ICBC). ICBC is described as China's largest bank by assets. After his tenure at ICBC, Wang became president of China Zheshang Bank Co. Ltd. (CZB)'s Hangzhou branch in 2008.
- 2008：
- Wang Weihua became president of China Zheshang Bank’s branch in Hangzhou.
- 2017：
- Wang Weihua helped set up Zheshang Industrial after leaving China Zheshang Bank, with Shen Renkang and Zhang Changgong orchestrating the move.
- 2021：
- The entity in which Wang Weihua had a stake sold shares of the developer, earning hundreds of millions of yuan and giving generous dividends to Zheshang Industrial’s management.
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