ANTI-GRAFT CAMPAIGN

Bank of Beijing director Lu Haijun under investigation in graft probe

PUBLISHED : Tuesday, 03 February, 2015, 9:25am
UPDATED : Tuesday, 03 February, 2015, 5:00pm

A director of the Bank of Beijing is under investigation by authorities, the second Chinese bank chief targeted by the country’s graft busters.

In a late night announcement on Monday, the Shanghai stock exchange said Lu Haijun, a board member of the bank, is being investigated by authorities for “serious breach of discipline” – shorthand for corruption-related wrongdoings in China.

Lu’s probe comes on the heels of the resignation of Minsheng Bank president Mao Xiaofeng after media reports that he had been taken away by anti-graft investigators for questioning.

Lu is also chairman of Hong Kong-listed Beijing Jingneng Clean Energy, which is the third-largest shareholder of Bank of Beijing with a 5 per cent stake. Jingneng, the largest natural-gas-fired power generation firm in the capital, also confirmed on Monday the investigation into its chairman.

Both firms said operations were normal.

Bank of Beijing shares opened 1.4 per cent higher at 10.18 yuan on Tuesday morning in Shanghai. Jingneng’s share also opened up 0.6 per cent in Hong Kong trading and climbed to HK$3.07 as of 9.56am.

Bank of Beijing is the largest city commercial bank on the mainland. Most such banks were formerly urban credit cooperatives. ING Bank is the largest shareholder in Bank of Beijing with a 16.34 per cent stake, followed by the Beijing government, which holds 8.84 per cent.

 

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