In recent times, the authorities in Beijing have been successively toppling several financial “tigers”. Taking stock of the past five years, the number of officials at the central level financial institutions who have been investigated has shown a year-on-year increase since 2020. Analysts believe that the changes in the Chinese Communist Party’s financial anti-corruption campaign are related to the deepening crisis of power and the intensification of efforts to seize wealth from the elite.
The fourth largest bank in China, Bank of China, announced on August 25 this year that Vice Chairman and CEO Liu Jin resigned for personal reasons. Chairman Ge Haijiao is serving as the acting CEO.
On August 23 this year, news of the fall of Bank of China CEO Liu Jin was circulated on mainland Chinese websites. Former Party Secretary and former Chairman of Bank of China Liu Liange was fallen in March 2023.
Liu Jin served as Vice President of the China Development Bank from September 2018 to November 2019. The China Development Bank is also a hotspot for corruption. On the 26th of this month, Deputy CEO Li Jiping of the bank was transferred to the procuratorial organs for investigation and prosecution for alleged bribery.
On August 21 this year, Deputy CEO Ding Wei of China Merchants Bank was under investigation. China Bank Securities issued an announcement stating that Ding Wei, as an independent director, will not participate in the company’s daily operation management.
In mid-August this year, Wang Chen, assistant to the Chief Inspector of the Investment Banking Department of Guoyuan Securities, was reportedly taken away for investigation; on August 7, Chen Mingli, former Party Secretary and General Manager of China Merchants Ping An Asset Management Company of China Merchants Group Co., Ltd. Shenzhen, was investigated.
On August 2 this year, Dong Guoqun, a member of the Party Committee of the Shanghai Stock Exchange and Deputy General Manager, was investigated; Chen Xiaopeng, former Party Secretary and Director of the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission, who retired four years ago, was investigated.
In late July, Jiang Chengjun, Deputy General Manager of Haitong Securities, was taken away for investigation.
The Chinese Communist Party’s financial anti-corruption efforts have been strengthened since 2020. In that year, there was a significant crackdown on “barbaric growth of capital” and the narrative of “safeguarding financial security”. According to official reports, among the financial officials investigated, the number of officials from central-level agencies, state-owned enterprises, and financial units was 15 in 2020, 39 in 2021, 56 in 2022, 75 in 2023, showing a year-on-year upward trend. “Southern Metropolis Daily” reported in May 2024 that by May of this year, 21 such officials had fallen.
Current affairs commentator Li Linyi told Epoch Times that the Chinese Communist Party’s financial system has always been controlled by princelings. Xi Jinping’s cleansing of the financial sector is phased, and the current goal is different from the beginning.
He analyzed that Xi’s first anti-corruption deputy Wang Qishan had a deep foundation in the financial sector himself and did not have direct conflicts with the financial elite, so even though there was a stock market crash in 2015, ultimately only Xiao Jianhua was caught. In Xi’s second term, after Wang Qishan retired to become the Vice President, Xi began to purge a large number of people in this area, including Wang Qishan’s old associates, former Deputy Governor of the People’s Bank of China Fan Yifei, and former Secretary-General of the People’s Bank of China and former CEO of China Everbright Bank Tian Huiyu. After the 20th Party Congress, when Wang Qishan completely retired, the current secretary of the Central Commission for Discipline Inspection is Xi’s confidant Li Xi, who further intensified the cleansing of the power of the former princelings in the financial sector.
Li Linyi also stated that Xi Jinping originally wanted to seize the money bags from the elites while consolidating power, and his power is also on the rise. However, at the 20th Party Congress, when Xi’s power reached its peak, the regime he held accelerated towards demise. The recent financial anti-corruption in the Chinese Communist Party is closely related to its economic downturn crisis and political crisis, aiming to tightly control the social wealth and guard against sudden political changes.
Yuan Hongbing, a scholar in Australia, previously stated in an interview with Epoch Times that the Chinese economy is experiencing a cliff-like decline, with a wave of massive unemployment surging, local government finances drying up, and facing diplomatic isolation. Xi Jinping is tightening control over financial work in preparation for a future Taiwan Strait conflict, where he may face international economic sanctions.
Yuan Hongbing recently told “Watching China” that whistleblowers within the Communist Party system have reported that due to the economic downturn, Xi Jinping’s need for undisclosed funds to prepare for a Taiwan Strait conflict will be exhausted. Between 2024 and 2025, Xi Jinping will focus on a sweeping cleanup in the financial field. One of the purposes is to confiscate enough funds for secret military expenses, which will further intensify conflicts of interest within the Communist Party system.