In a recent development, former chairman of Xinhua Life Insurance, a state-owned listed life insurance company in China, Li Quan has been arrested on charges of corruption and bribery.
According to the Chinese Communist Party’s High Inspection Network on October 12th, the investigation into the case of Li Quan, former Party Secretary and Chairman of Xinhua Life Insurance Co., Ltd., on suspicion of corruption and bribery has concluded. Recently, the Shandong Provincial Prosecutor’s Office made the decision to arrest Li Quan on charges of corruption and bribery.
Official reports indicate that Li Quan had accepted banquets multiple times; violated the rules in employment to benefit others; accepted gifts and money improperly; used the convenience of state-owned financial institutions to engage in profit-making activities on a large scale; received additional compensation for part-time work and excessive salary payments; shamelessly engaged in “financial feasting on finance,” engaged in corrupt transactions, used his position for the benefit of others in business operations and acquisition of investment opportunities, illegally accepted huge sums of money, embezzled public funds without scruples, and resisted organizational review.
Li Quan has been expelled from the party, deprived of entitlements, and confiscated of ill-gotten gains.
Aged 61, Li Quan joined Xinhua Insurance in 2010 and served in Xinhua Assets for nearly a decade. He held positions such as President of Xinhua Assets Management Co., Ltd., Acting Head of Xinhua Life Insurance Co., Ltd., CEO of Xinhua Insurance in August 2019, and Chairman in April 2023. Four months later, Xinhua Insurance announced Li Quan’s retirement due to age.
In April this year, rumors surfaced within the industry about Li Quan going missing. On September 30th, Li Quan was formally investigated for serious violations.
With this latest development, Xinhua Insurance has seen three chairmen facing trouble. Previously, Guan Guoliang, the former chairman of Xinhua Insurance, was sentenced to 6 years in 2012; Li Quan’s predecessor, Wan Feng, the former chairman of Xinhua Insurance, was sentenced to 6 years and 6 months in December 2023.
This case adds to the ongoing crackdown on corruption in the Chinese financial sector, highlighting the importance of accountability and transparency in leadership positions within state-owned enterprises.