anti-graft Photo: VCG

Chinese anti-graft authorities on Wednesday launched an investigation into Li Xiaopeng, the former chairman of state-owned China Everbright Group, as the nation deepens the anti-corruption campaign in the financial system in a further effort to prevent financial risks.

According to a statement from the Central Commission for Discipline Inspection (CCDI) of the Communist Party of China and the National Supervisory Commission, Li is suspected of "serious violations of discipline and law." The statement did not go into details what the violations are.

The announcement came just one week after a probe was launched into former Bank of China (BOC) chairman Liu Liange, the first former head of a centrally administered state-owned lender to be put under criminal investigation since the 20th CPC National Congress was held in October 2022, according to a report from news site Chinanews.com.

More than eight senior executives from large state-owned banks and insurance companies were put under investigation in March alone, according to Chinese media reports. The list includes Wang Jianhong, former head of BOC's Beijing branch; Zhao Zhiran, an executive of China Construction Bank's Shenzhen branch, South China's Guangdong Province, and other executives.

Chinese observers said the latest acceleration in the country's anti-corruption campaign is actually a continuation of the government's sustained efforts to build up clean governance and administration, noting that corrupt executives at state-owned banks and other financial organizations use public financial resources to seek private gains, which damages the interests of the general public and generates financial risks.

Against the backdrop of the latest wave of banking system crises in the US and Europe, it is crucial for China to enhance the stability of the country's financial system and eliminate hidden risks, the observers said.

On March 27, CCDI, China's top anti-graft watchdog, said it will launch a fresh round of investigations into more than 30 state-owned companies, including China Investment Corporation and PetroChina, and will also "look back" at five other financial firms that had been previously scrutinized such as China Everbright Group.

Global Times