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Chinese Former Banking Regulator Gets Suspended Death Sentence

Published: Dec. 1, 2025 6:25 p.m. GMT+8

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Liu Zhangjun

A former Chinese banking regulator has received a suspended death sentence for taking more than 187 million yuan ($26 million) in bribes in a case tied to the 2022 Henan rural banking scandal, according to a release jointly issued Friday by China’s top court and top prosecutor’s office.

The authorities identified the official only by his surname, Liu, but a person familiar with the matter confirmed to Caixin that he is Liu Zhangjun, a former head of the office that handled illegal fundraising cases at the now-defunct China Banking Regulatory Commission (CBRC).

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Former CBRC official Liu Zhangjun received a suspended death sentence for taking over 187 million yuan ($26 million) in bribes related to the 2022 Henan rural banking scandal.
Liu’s actions from 1998–2021 enabled illegal stakes, unrepayable loans, and promotions, causing significant loss; all assets were confiscated.
The scandal involved Henan Xincaifu Group, affecting 400,000+ customers and 40 billion yuan, with several ex-regulators, including Cai Esheng, implicated.

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Who’s Who

Henan Xincaifu Group Investment Holding Co. Ltd.: Henan Xincaifu Group Investment Holding Co. Ltd. was the shadow entity behind the 2022 Henan rural banking scandal. Its controller, Lü Yi, used cross-shareholdings and fabricated loans to siphon funds, affecting over 400,000 customers and involving approximately 40 billion yuan. A former banking regulator, Liu Zhangjun, assisted this company in obtaining stakes in a village bank and securing promotions.

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What Happened When

1998-2015：: Liu Zhangjun used his regulatory positions to help entities obtain stakes in a village bank, secure promotions, accept more than 150 million yuan in bribes, and cause huge loans to become unrecoverable.

After 2015：: After retiring, Liu continued to use his influence through other officials to help others secure loans and job promotions, taking more than 37 million yuan.

By 2021：: Liu Zhangjun’s improper influence in helping others in the banking sector continued until this year.

2022：: Scandal involving Henan Xincaifu Group Investment Holding Co. Ltd. erupted: several village banks in Henan and Anhui froze online withdrawals, affecting over 400,000 customers.

2025-11-29：: China’s top court and prosecutor’s office jointly released the sentencing of Liu Zhangjun, giving him a suspended death sentence for bribery connected to the 2022 Henan rural banking scandal.

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