1. [para. 1][para. 2] China’s top judicial authorities disclosed details of a corruption case against Zhang Huayu, former deputy president and deputy Communist Party chief of China Everbright Bank. Zhang and his wife collected 4.29 million yuan ($640,000) in salaries through nominal corporate appointments that rewarded his help securing loans and expanding business. Zhang was sentenced in August 2023 to 12½ years in prison for bribery and accepting bribes through the use of influence.
2. [para. 3] On Nov.5, the Supreme People’s Court and Supreme People’s Procuratorate released six illustrative cases involving new or concealed forms of official corruption. One identified the defendant only by his surname, Zhang. Caixin confirmed through his positions, career history, case amounts, and sentencing dates that he was Zhang Huayu.
3. [para. 4][para. 5] The newly disclosed findings describe two arrangements: a corporate board position Zhang took after leaving the bank and an independent-director appointment secured for his wife. Authorities ruled that neither performed substantive work equal to the pay and counted their entire salaries as bribes. Zhang resigned shortly before retirement; anti-corruption authorities called it a model of officials preparing lucrative positions before leaving office to escape scrutiny.
4. [para. 7][para. 8][para. 9] In August 2018, Zhang used his position to help a company partly owned by an investment firm obtain a 150 million yuan loan. The investment firm’s chairman, Du, offered to thank him in person, but Zhang suggested waiting until after he left Everbright. Du then proposed that Zhang take a nominal board position and receive compensation. Zhang agreed. In November 2018, after leaving the bank, he became vice chairman and nonexecutive director of the firm, holding the role until March 2021 and collecting 3.89 million yuan. He attended one board meeting and did no other work.
5. [para. 10][para. 11] Caixin identified the firm as Hong Kong-listed China Financial International Investments Ltd., which announced Zhang’s appointment effective Nov.19, 2018; its chairman was Du Lindong. Public records also show Zhang later became chairman of Tongfang Guoxin Investment Holding Co., controlling shareholder of Chongqing Trust, and in 2020 became head of Chongqing Trust’s Communist Party committee and a director.
6. [para. 12][para. 13][para. 14][para. 15] Between December 2007 and August 2018, Zhang helped a trust company expand business and sell bonds. In early 2018, the trust’s chairman, Weng, offered to appoint Zhang’s wife Li as independent director at a fund-management company controlled by the trust, though Weng knew she was unqualified. Zhang accepted. Li held the post from August 2018 to September 2021 and received 400,000 yuan. She never visited the fund company, attended three board meetings by video, signed documents without reviewing them, rarely spoke, and Weng had subordinates write her independent-director reports.
7. [para. 16][para. 17] The Heze Intermediate People’s Court in Shandong found Zhang accepted money and property worth 7,736,271 yuan between February 2001 and September 2021 in exchange for help with loans, business development and employment. Separately, he accepted 6,919,536 yuan between January 2019 and November 2021 by using influence from his former Everbright positions, working through state employees to secure loans, adjust corporate credit ratings and arrange employment.
8. [para. 18] On Aug.11, 2023, the court sentenced Zhang to 10.5 years for bribery and five years for accepting bribes through the use of influence, with fines of 800,000 yuan and 500,000 yuan respectively, for a combined sentence of 12.5 years and 1.3 million yuan in fines. The court ordered seized illicit assets forfeited to the state and continued recovery of remaining proceeds. Zhang did not appeal.
9. [para. 19] The court said Zhang voluntarily disclosed most bribery offenses not yet uncovered, admitted his crimes, accepted punishment, and actively returned illicit proceeds. Most of the money and property had been recovered, providing grounds for reduced punishment.
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