CDB appoints new Hong Kong boss after Ping An loan probe

The head of China Development Bank's Hong Kong branch has been moved back to Beijing after an internal probe into a loan deal for the US$9.4 billion bid by a Thai conglomerate for HSBC's holding in Ping An Insurance.

Liu Hao, who was the Hong Kong chief of CDB for almost a year, will become a deputy division head in charge of planning and strategy in the Beijing headquarters of the state-owned bank. His new job is equivalent in rank to the old one.

Han Baoxing, who is a key player in offshore yuan-related matters at CDB, will replace Liu. Han is a division head in charge of capital flows and investment at the bank's head office. The news of CDB's new Hong Kong chief was reported yesterday by the Caixin Century Weekly.

The South China Morning Post broke the news on January 10 that CDB senior executives had ordered Liu to return to Beijing to assist in an internal investigation amid growing doubts and questions about a deal to provide loans for Charoen Pokphand (CP) to acquire the 15.6 per cent stake in Ping An, the mainland's No 2 life insurer.

Later, some "systematic problems" in the loan approval process were discovered at the Hong Kong branch, one source said. Although Liu was one of the decision makers who initially approved the deal, the fact he is being moved sideways may indicate he will not take the blame for the decision.

The personnel change at the bank is still subject to approval from the China Banking Regulatory Commission.