The Chinese Communist Party (CCP) is intensifying its crackdown on the financial system, with rare announcements on the website of the Central Commission for Discipline Inspection during the Third Plenary Session revealing the downfall of three bank executives. This year, many high-ranking officials in state-owned banks and financial institutions in China have been investigated, indicating a strict stance by the disciplinary and supervisory agencies on cleaning up the financial sector. Analysts say that the CCP’s political and economic interest landscape is undergoing a reshuffle.
According to the website of the CCP Central Commission for Discipline Inspection, three bank executives were brought down during the Third Plenary Session of the CCP held from July 15 to 18. They are He Zeshu, a member of the Communist Party Committee and secretary of the Business Department of the Sichuan Branch of the China Development Bank; Wang Fade, former Communist Party Committee Secretary and President of the Tianjin Branch of the China Exim Bank; and Xu Yanfeng, a member of the Communist Party Committee and Deputy President of the Shanghai Branch of the Industrial and Commercial Bank of China.
Xu Yanfeng, a member of the Communist Party Committee and Deputy President of the Shanghai Branch of the Industrial and Commercial Bank of China, was announced to be under investigation on the 18th. Public records show that Xu Yanfeng has served in the Industrial and Commercial Bank system for many years, holding positions such as General Manager of the Liaoning Branch, President of the Benxi Branch, Assistant President of the Liaoning Branch, among others. In September 2015, Xu Yanfeng was promoted to Deputy President of the Liaoning Branch of the Industrial and Commercial Bank and was transferred to the Shanghai Branch as Deputy President in 2022. Just a week before being investigated, Xu Yanfeng had spoken publicly at a meeting.
Wang Fade, former Communist Party Committee Secretary and President of the Tianjin Branch of the China Exim Bank, was announced to be under investigation on the 17th. Public records show that he previously worked in the Public Transit Department and Social Security Department of the Ministry of Finance before joining the China Exim Bank in 2003. He held various positions within the bank, including Deputy Chief and Chief of the Loan Department, Deputy and Chief Representative in Southeast Africa, Deputy General Manager of the Preferential Loan Department, Deputy General Manager of the Evaluation and Review Department, and Secretary and President of the Ningbo and Tianjin branches. While leading the Tianjin branch, Wang Fade also held positions such as Deputy Director of the Economic Committee of the Tianjin Political Consultative Conference.
In addition to his role as a financial executive, Wang Fade is also a researcher at a certain university, enjoying a special subsidy from the State Council of the CCP.
He Zeshu, a member of the Communist Party Committee and Secretary of the Business Department of the Sichuan Branch of the China Development Bank, was announced to be under investigation on the 15th. Public information shows that He Zeshu has worked at the China Development Bank for many years, serving as the President of the Ziyang City Branch and the Director of the Investment Department of the Sichuan Branch.
On April 23, the website of the Sichuan Regulatory Bureau of the National Financial Supervision Administration of the CCP showed that He Zeshu had received regulatory approval to serve as the General Manager of the Business Department of the Sichuan Branch of the China Development Bank. He was supposed to take up the position within three months from the date of approval, as indicated in the reply dated April 16, 2024.
Before assuming the position of General Manager of the Business Department, He Zeshu was investigated in his capacity as a member of the Communist Party Committee and Secretary of the Business Department of the Sichuan Branch of the China Development Bank.
Since July, at least six senior executives of state-owned banks have been investigated.
On July 13, Liu Yujuan, a member of the Communist Party Committee and Deputy President of the Shijiazhuang Branch of the Guangfa Bank, was announced to be under review and investigation. Public information shows that Liu Yujuan has served in the financial system for a long time, including positions such as Deputy President of the Jinan Branch of the Guangfa Bank.
On the same day, Peng Jiabin, former member of the Communist Party Committee and Deputy President of the Jiangxi Branch of the China Construction Bank, was reported to be under review and investigation. Public information shows that Peng Jiabin has worked at the China Construction Bank for many years, holding various positions including Deputy President of the Jiangxi Branch, and attending public events multiple times.
On July 10, Wu Ningfeng, former Communist Party Committee Secretary and President of the Inner Mongolia Branch of the Industrial and Commercial Bank of China, was reported to be under review and investigation. Born in 1960, Wu Ningfeng served as the Communist Party Committee Secretary and President of the Inner Mongolia Branch of the Industrial and Commercial Bank of China, and also held positions at various institutions within the bank. Wu Ningfeng has also served as Deputy President of the Shaanxi Branch, President of the Xinjiang Branch, and Director of the Northwest Internal Audit Bureau of the Industrial and Commercial Bank, among other positions.
On July 5, Yi Yingsen, former Director of Sales and General Manager of the Institutional Business Department of the Agricultural Bank of China, was reported to be under review and investigation. Born in September 1956, Yi Yingsen has a master’s degree and extensive experience in the financial sector, previously working at the People’s Bank of China and the Agricultural Bank of China. Yi Yingsen held various positions within the Agricultural Bank of China, including Party Secretary and President of the Guangxi Branch, and later served as President of the Hubei and Beijing branches. After leaving the Agricultural Bank, he appeared at public events several times.
On the same day (July 5), Liu Feng, former Deputy Party Secretary and Secretary-General of the China Banking Association, was reported to be under review and investigation. Public information shows that Liu Feng, born in Lu Long, Hebei, in September 1963, held various positions in banking regulatory authorities before joining the China Banking Association. Liu Feng was previously Deputy Director of the Heilongjiang Banking Regulatory Bureau, Party Secretary of the Tianjin Banking Regulatory Bureau, and Secretary and Director of the Jilin Banking Regulatory Bureau, among other positions. In November 2018, Liu Feng served as Party Secretary and Director of the Jilin Banking Regulatory Bureau before becoming Deputy Secretary-General of the China Banking Association. Liu Feng’s subordinate, former Deputy Secretary-General of the China Banking Association, Guo Sanye, was also investigated and dismissed last year.
On July 3, Jiang Qi, Deputy Inspector of the Hunan Branch of the Agricultural Bank of China, was reported to be under review and investigation. Born in July 1964, Jiang Qi has worked at the Agricultural Bank of China for many years. From April 2012 onwards, Jiang Qi served as Party Secretary and President of the Changde Branch of the Agricultural Bank of China, and was later appointed as Senior Expert at the Hunan Branch.
In addition to the mentioned executives who have been investigated, several high-ranking officials from state-owned banks, joint-stock banks, and policy banks have been subject to investigations and disciplinary actions this year.
Firstly, the China Construction Bank has seen multiple cadres under investigation, including senior assistant manager Fan Ti at the Guangdong Branch, former Deputy Party Secretary and Deputy President Li Huafeng at the Shenzhen Branch, and former Deputy General Manager of the Asset Management Business Center Tong Wentao.
Furthermore, officials at the China Construction Bank have been disciplined this year, such as Luo Xinjiang, former Party Secretary and Deputy President of the Zhejiang Branch, who was expelled from the Party and public office, Li Hui, former Risk Director of the Ningxia Branch, who was expelled from the Party, and Li Xiaohong, former Senior Assistant Manager of the Zhejiang Branch, who was also expelled from the Party.
In the Industrial and Commercial Bank of China system, at least twelve executives have been investigated and many have been expelled from the Party this year.
On the last day of the Third Plenary Session of the CCP, July 18, Fan Dazhi, head of the supervisory team stationed at the China Securities Regulatory Commission of the Central Commission for Discipline Inspection and the National Supervisory Commission, published an article in the Party’s newspaper, the “Discipline and Supervision Daily,” stating the need to intensify the comprehensive punishment for bribery in the capital market and to strictly investigate violations of discipline and law by the top leaders in the capital market.
Political commentator Li Yanming told The Epoch Times that China’s economy is in a perilous situation, prompting the authorities to accelerate the process of cleansing the financial system and to continue cleaning up the “money bags,” indicating that the political and economic interest landscape of the CCP will be reshuffled.