CHINA-ECONOMY: AT LEAST FOUR OFFICIALS IN FINANCIAL SECTOR SACKED AFTER HENAN BANK FINANCIAL SCANDAL
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Reports indicate that the case of four village banks in Henan continues to ferment. After the
violent suppression of the former rights defenders on July 10 and because the incident occurred
at a sensitive period before the 20th National Congress of the Communist Party of China, the
authorities appeased the victimized depositors in batches in order to maintain stability, and at
the same time called some officials to take responsibility. Three more financial system officials
were sacked on July 29. On July 29, the Henan Provincial Commission for Discipline
Inspection and Supervision announced that three more officials from the local financial system
had been investigated. They include Zhao Dewang, Director of the Financial Stability Division
of the Zhengzhou Central Sub-branch of the People's Bank. Many netizens protested that the
three officials being investigated by the authorities were: "Little fish and shrimp", "Just
investigate the director?" "You have to take the blame, otherwise such a big How to fill the
basket.” Prior to this, on July 24, Li Huanting, the first-level inspector of the Henan Supervision
Bureau of the China Banking and Insurance Regulatory Commission, was sacked. According
to the disclosure of resume information, Li Huanting served as the director of the second
division of rural small and medium-sized financial institutions supervision of the Henan
Supervision Bureau of the former China Banking Regulatory Commission. On July 17, Song
Zhanying, the former inspector of the CBRC's Office for Disposal of Illegal Fund Raising, was
investigated; on the same day, Zhang Yansen, the former CBRC Disciplinary Commission and
Division-level Disciplinary Inspector and Supervisor of the Supervision Bureau, was sacked.
The China Banking and Insurance Regulatory Commission confirmed in mid-June that some
executives of several village banks in Henan colluded with the major shareholder Henan New
Fortune Group inside and outside to illegally absorb deposits from the public. On July 29, the
Henan Banking and Insurance Regulatory Bureau and Henan Provincial Local Financial
Regulatory Bureau issued an announcement that from 9:00 am on August 1, Yuzhou
Xinminsheng Rural Bank, Shangcai Huimin Rural Bank, Zhecheng Huanghuai Rural Bank,
Kaifeng New Oriental Rural Bank's off-book business customers will start to get an advance
amounting to the principal of a single institution and a single person with a combined amount
of 100,000 yuan to 150,000 yuan (inclusive), and further advances if it is below 100,000 yuan
(inclusive).
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