Finance Movers and Shakers: Sovereign Fund Unit’s New President, Ex-Central Bank Deputy’s Death Sentence

Finance Movers and Shakers is a biweekly newsletter focusing on major personnel changes and corruption issues in China’s finance sector. The publication provides valuable insights into leadership shifts and regulatory challenges affecting major financial institutions in China. [para. 1]

Central Huijin Investment Ltd., the domestic arm of China Investment Corp. (CIC), announced Liu Jiawang as its new president. Liu, previously an executive vice president at Agricultural Bank of China Ltd., one of China’s “Big Four” state-owned banks, takes over from Shen Rujun, who retired. Liu also took over as a vice chairman of Central Huijin, and this move closely follows his appointment as an executive vice president of CIC. [para. 3]

Gong Xingfeng has been promoted to president of New China Life Insurance Co. Ltd. (NCL), subject to regulatory approval. This move marks a significant shift as Gong replaces Zhang Hong, who is retiring. Gong, who joined NCL in 1999, has held several roles, including chief actuary and vice president since 2016. His appointment is critical as NCL faces increased scrutiny amidst China’s crackdown on financial corruption, with some of its former leaders embroiled in scandals. [para. 5]

In a focus on corruption scandals, Li Quan, former chairman of NCL, has been arrested for bribery and embezzlement. His expulsion from the Communist Party emphasizes the severity of the charges, reflecting ongoing anti-corruption efforts in China’s finance sector. [para. 7]

Fan Yifei, a former deputy governor of the People’s Bank of China (PBOC), received the death penalty with a two-year reprieve for accepting over 386 million yuan ($53.3 million) in bribes between 1993 and 2022. Fan’s case illustrates the breadth of corruption issues, as he facilitated loans, job placements, and contracts in return for bribes across various roles in the central bank and state-owned firms. [para. 9]

Additionally, Lin Qiang, a Chinese businessman and former chairman of the now-insolvent HHSC Capital, was arrested in Bali for his involvement in illegal fundraising and transferred to Interpol. Lin allegedly orchestrated an economic crime in China, raising over 100 billion yuan from more than 50,000 victims. After fleeing China in August 2023, Lin's arrest marks a significant development in the case, highlighting the scale of financial misconduct and its cross-border implications. [para. 11] The investigation by Shanghai police into HHSC Capital further underscores the gravity of the firm’s fraudulent activities, as it halted payments on asset management products likely totaling around 30 billion yuan. [para. 13]

Overall, Finance Movers and Shakers offers an essential overview of the evolving financial landscape in China, characterized by leadership transitions and a stringent crackdown on corruption. The newsletter underscores the importance of governance and transparency in financial institutions and the impact of regulatory measures on corporate leadership. Readers are encouraged to review past editions for a broader understanding of these ongoing trends and to contact the involved reporters and editors for more insights.