Three more Henan bank officials under investigation

What’s new: Three more banking officials in central China’s Henan province have been investigated by anti-corruption agencies as probes into the province’s financial system escalate following a scandal multi-billion dollar bank.

Guo Qin, an inspector from the provincial branch of the China Banking and Insurance Regulatory Commission (CBIRC), and Xia Jun, head of the Kaifeng office of the Henan branch of the CBIRC, are suspected of serious violations of the law and Communist Party discipline, the CBIRC said. Friday in a press release.

Separately, Zhaog Dewang, director of the Financial Stability Department of the Zhengzhou Central Branch of the People’s Bank of China, is being investigated on suspicion of similar serious violations, the Central Commission office said on Friday. Discipline Inspection (CCDI) of the Communist Party in Henan.

No details of the investigations were released, but these announcements usually refer to corruption.

Guo and Xia’s job responsibilities included overseeing village banks at the center of the scandal after they froze tens of billions of yuan in customer savings in April. by Guo predecessor Li Huanting was charged a few days ago.

The background: Four village banks in Henan (Yuzhou Xin Min Sheng Village Bank, Tuocheng Huanghuai Village Bank, Shangcai Huimin Village Bank and Kaifeng Xin Dong Fang Village Bank) as well as two others in neighboring Anhui Province are under review painstaking since customers complained in mid-April that they couldn’t make online withdrawals.

Initial investigations revealed that a criminal group led by the majority shareholder of the private company Henan Xincaifu Group Investment Holding Co. Ltd. is suspected of using village banks to make illegal deposits since 2011. The gang allegedly took control of lenders through illicit means, sold financial products through their own platform and set up front companies to conceal information, the police said. police.

Authorities have arrested several dozen people linked to the scandal. Several Henan officials and local banking regulators are also under investigation, according to the Henan graft breakers.

Quick Takes are condensed versions of China-related stories for quick news that you can use. To read the full story in Chinese, click here.

Contact journalist Denise Jia ([email protected]) and editor Bob Simonon ([email protected])

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