China’s corruption watchdog investigates Gu Guoming, head of ICBC’s Shanghai branch
- Gu Guoming, chief governor of the branch, is regarded as one of the most powerful figures in Shanghai’s financial sector
- It is the second scandal involving the world’s biggest lender by assets in the space of two months
The head of the Industrial and Commercial Bank of China’s Shanghai branch is under investigation for alleged serious violation of party discipline and infringement of criminal laws, the Communist Party’s anti-corruption body said.
The Central Commission for Discipline Inspection (CCDI) of the Communist Party said in a statement on Thursday evening that it had placed Gu Guoming, the bank’s chief governor, under investigation.
It is the second scandal involving the world’s biggest lender by assets in the space of two months. The CCDI launched an inquiry into Xie Ming, a retired deputy chief of ICBC’s Chongqing branch, in April.
A CCDI statement on Thursday night did not give any details of Gu’s alleged misconduct.
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Gu, who is also chairman of the Shanghai Payment and Clearing Association, is regarded as one of the most powerful figures in Shanghai’s finance sector.
The anti-corruption watchdog has been taking a harsh stance against the finance sector over the past five years and has snared several powerful ministry-level officials, including former top insurance regulator Xiang Junbo and Liu Shiyu, former chairman of the securities regulator.
China’s financial sector was hit by a series of crises that included the stock market rout in 2015 that wiped out market value of US$5 trillion in less than three months, and illegal bond trading on the interbank market that helped dozens of government officials and fund managers pocket billions of yuan.
Gu is the most powerful state-owned company boss to be investigated on corruption charges in Shanghai since the CCDI apprehended Wu Jianrong, chairman of the Shanghai Airport Authority, in August last year.
In May, ICBC retained the title as the world’s largest lender by assets for a seventh consecutive year, according to the Global 2000 list. It has more than US$4 trillion in assets and employs nearly 500,000 people.
