China’s quick execution of former top banker shows Beijing is dead serious about quelling corruption

A legal procedure that usually goes on for months or even years was wrapped up in less than four weeks, from start of the trial to former top banker’s death

Lai Xiaomin’s swift execution sends the sternest of warnings in matters concerning corruption and financial risks

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Lai Xiaomin, former chairman of China Huarong Asset Management, was executed on Friday after being convicted last month of accepting US$277 million worth of bribes. Photo: Reuters

Zhou Xin

Zhou Xin is Tech Editor of the Post, following stints as Political Economy Editor and Deputy China Editor.

Published: 8:00pm, 1 Feb 2021Updated: 10:58pm, 1 Feb 2021

Last week’s execution of a former top banker at one of China’s largest state-controlled asset management firms set a record – never before had a senior Chinese financial official been put to death in such a swift manner.

Lai Xiaomin, former chairman of China Huarong Asset Management, was sentenced to death on January 5 by the Tianjin No 2 Intermediate People’s Court, convicted of accepting US$277 million worth of bribes. The Tianjin High Court rejected his appeal on January 21. And on Friday, just eight days later, the 58-year-old’s execution was carried out.

A legal procedure that usually goes on for months or even years was wrapped up in less than four weeks for a man who was once one of the most high-profile of Chinese bankers.

Lai’s sentencing, without the usual reprieve period, was already shocking. His quick execution – the manner of which remains undisclosed – is even more extraordinary. This has fanned widespread discussion as to whether Lai deserved to be shown mercy, particularly as his cooperation with investigators was described as being “meritorious” in state media reports.

The sheer size of his ill-gotten gains – totalling almost 1.8 billion yuan – is staggering. In a documentary that aired on state television, Lai was shown to have hidden away about 270 million yuan in cash in a flat that he nicknamed “the supermarket”.

It showed bundles and tall stacks of 100 yuan notes – an insult to a country where 600 million people earn around 1,000 yuan a month.

But the amount that Lai had amassed was just one factor in the court’s ruling. The official Xinhua news agency reported that Lai’s conduct “endangered national financial security and financial stability” – a charge that goes far beyond personal greed. Xinhua said Lai had “caused extremely heavy losses for the nation and the people”, for which he must be subject to the maximum punishment.