Former deputy governor of China Minsheng Bank under investigation
Zhao Pinzhang, former vice-president of China Minsheng Banking Corp Ltd. [Photo/VCG]
Former Vice President of the China Minsheng Banking Corp Ltd, 61-year-old Zhao Pinzhang, is now under official investigation, according to people familiar with the matter. It's being said the ex-executive vice-president may be involved in a problematic loan provided to the construction crew of a subsidiary of the China Railway Construction Corporation Limited (CRCC), according to Caixin.com.
Journalists with Caixin reported that Minsheng Bank has sued China Railway 15th Bureau Group Co Ltd of CRCC. The case involved 500 million yuan ($72.6 million). Official records confirm a possible suit in October, 2016, in which a Beijing branch of Minsheng Bank sued for the 15th Bureau's 185 million yuan ($26.9) in assets.
Zhao was reportedly taken away from the airport last Thursday. Before that, he had been in charge of Minsheng Bank's credit assessment and risk management departments for years.
The impact of Zhao's investigation on China Minsheng Bank remains unclear.
Founded in 1996, the China Minsheng Bank is the first bank in China to be owned mostly by non-government enterprises. It is known for focusing on making loans to small and medium-sized enterprises.
Recently, the head of Minsheng's Hangtianqiao branch was detained for selling wealth-management products which did not even exist. The money had been used to cover up a financial black hole left when managers of the branch were unable to recover from a commercial notes scheme. The hole the loan left could exceed 3 billion yuan ($436 million), according to the Caixin report.
- Contract dispute between Shaoxing Branch of Bank of Ningbo Co, Ltd, Sanya Branch of China Minsheng Bank Co, Ltd and Bank of Hebei Co, Ltd
- Private lending dispute between Handan Branch of China Minsheng Bank, Hao Wenqing, Handan-based Yitong Transportation and SalesCo, Ltd, Handan-based Kunsheng Transportation and Sales Co, Ltd,Handan-based Taiye Materials Co, Ltd, Handan-based Lanfa Materials Co, Ltd, Li Liyong and Cui Gaiqing
- Bill recourse dispute between Sanya Branch of China Minsheng Bank Co, Ltd and Ningbo Branch of Ping’ An Bank Co, Ltd
- Loan contract dispute between Shenzhen-based Jiuce Investment Co, Ltd, Tianjin-based Jiuce High-tech Industrial Park Co, Ltd, Tianjin-based Longqiao Trading Co, Ltd, Shenzhen Branch of China Minsheng Bank Co, Ltd, Shenzhen-based Shengkangda Technology Co, Ltd, Gong Dongsheng, Zhang Rong, Tianjin-based Jiuce Industrial Group Co, Ltd, Tianjin-based Jiuce Real Estate Development Co, Ltd, Tianjin-based Jianxida Furniture Market Co, Ltd, Wuhan-based Ouyada Furniture Group Co, Ltd
- Financial loan contract disputes among Chengdu Yihe Tiancheng Real Estate Development Co, Ltd, the Chengdu branch of China Minsheng Bank, and Sichuan Harmony Group Co, Ltd; and between Shen Bing and Sichuan Huien Investment Management Co, Ltd