By Kane Zhang
April 28, 2023 Updated: April 28, 2023
Since the start of 2023,
dozens of senior banking executives in China have resigned or been under
investigation. This phenomenon marks a reshuffling of the Chinese Communist
Party’s (CCP) financial sector, with various factions within the regime
battling for their own interests, according to a China expert.
This month, senior bank
executives were frequently reassigned. Nearly 10 banks made significant
personnel changes, including the Postal Savings Bank of China announcing the
resignations of two vice presidents, according to Chinese news portal Sina.
On April 13, Zheng Guoyu,
vice president of the Industrial and Commercial Bank of China (ICBC), resigned
from the board of directors. ICBC is the largest bank in the world by total
assets.
On April 17, four
executives from Bank of China, China CITIC Bank, Jiangsu Suzhou Rural Bank, and
Bank of Zhengzhou announced their resignations.
Amid the resignations,
regulators investigated the banking sector. According to Chinese reports,
dozens of banking executives are under investigation, and the alleged crimes
involve bribery and unlawful loans.
The CCP owns the major
banks, and the regional banks are usually owned by local governments under
the central authorities. Some of the world’s largest banks by total assets are
all from China, with four Chinese banks surpassing JP
Morgan Chase and Bank of America.
China’s banking sector is
rife with corruption. Various factions within the CCP compete against each
other for financial and political control.
According to current
affairs commentator Li Yanming, the Chinese banking sector has long been
controlled by the factions of the late former CCP leader Jiang Zemin and Zeng
Qinghong, former vice chairman. They are allegedly linked to shady practices in
China’s stock market, real estate sector, and state-owned enterprises, Li said.
Although Jiang passed
away last November, his close ally Zeng, second only to Jiang in the Shanghai
Gang faction, still threatens Xi’s rule, and members of this faction are not
loyal to Xi.
Li noted that the recent
investigations in China’s big banks are happening while A-share company
executives are collectively reducing their holdings to cash, and the stock
market is plummeting.
He said that behind
China’s economic crisis, the different factions within the CCP are battling for
dominance in the banking sector.
https://www.theepochtimes.com/chinas-xi-is-cracking-down-on-bankers-financial-system_5224927.html
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