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Deputy Chief of Shanghai-Listed Bank under Investigation

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Published on : May 05, 2015

The Chinese finance industry has been hit by another corruption probe with the deputy chief of Hua Xia Bank being investigated for suspected disciplinary violations. The mid-sized Chinese bank announced that the antigraft authorities are investigating the charges against Wang Yaoting, one of its four vice presidents. The lender is listed on Shanghai Stock Exchange. In its filing, the bank mentioned that the banking operations would be continued normally and would not affect the financial position. Mr. Wang could not be contacted for comment. 

The Beijing branch of the ruling communist party’s discipline inspection arm has been investigating the case. Though the charges against the vice president have been termed as disciplinary violations, it is commonly presumed as suspected corruption. The antigraft corruption campaign launched by the president Xi Jinping has aimed to remove corruption prevailing in the party as well as from the various sectors of the country. This has been seen as a measure by the communist leaders to tighten their grip on power. The campaign has already targeted a number of officials in state-run companies, especially in the oil sector. It has now turned its attention towards the financial sector.

In January, the state media reported that the head of China Minsheng Banking Corp., the biggest nonstate bank in the country, was accused of his ties to a former top Communist Party official. Both of them have been placed under investigation. The campaign hit another blow to the banking sector of the country with a board member of Bank of Beijing Co. being investigated over “possible serious violations” of party discipline.