China Merchants Bank’s former president, Tian Huiyu was investigated on Friday, April 22, for allegations of serious violation of discipline and law.
The Chinese Communist Party’s Central Commission for Discipline Inspection made the announcement five days after the country’s top retail bank removed Tian from his post on April 18.
Following the change in top personnel, Bloomberg reported that China Merchants Bank shares plunged 13 percent over the past week.
Tian, 56, had spent nine years working in Merchants Bank since May 2013. Before that, Tian held several positions at other Chinese lenders, including the Bank of Shanghai.
Tian once served as a secretary for Wang Qishan as Wang led the state-owned China Construction Bank in the 1990s. Wang Qishan is now the Chinese vice president.
Before Tian’s dismissal, former top corruption inspector Dong Hong, who also spent many years serving as Wang Qishan’s secretary and was considered Wang’s confidant, was sentenced.
Dong received a suspended death sentence in January this year for an accusation of taking $71 million in bribes.
China has stepped up its effort to combat corruption in the financial sector in recent years.
According to Bloomberg, China’s top disciplinary body criticized more than two dozen financial regulators and state banking institutions in February 2022.
It claimed they all had problems, such as corruption.
One day after Tian’s removal, Yan Jun, Everbright Securities’s chairman, and party committee secretary, was dismissed from his current position on April 19.
China Securities Regulatory Commission’s first-level inspector, Zeng Changhong, was also arrested on April 22 for allegedly taking bribes.