Former Chairman of State-Owned Bank China Everbright Group Arrested Over Suspected Corruption

In a significant development, the former chairman of China Everbright Group, a state-owned Chinese bank, has been arrested on charges of embezzlement and bribery, according to a statement released by prosecutors on Monday. The arrest of Tang Shuangning is part of a broader anti-corruption campaign being waged by Chinese authorities.

The investigation into Tang Shuangning, who served as the former party secretary and chairman of China Everbright Group, has concluded, and the case is set to be transferred to the procuratorate for review and prosecution, as announced by China’s Supreme People’s Procuratorate.

Tang, aged 69, faced expulsion from the Chinese Communist Party earlier this month due to violations of disciplines and laws, marking a high-profile move in the ongoing crackdown on corruption within China’s financial sector. Tang retired from his position in 2017.

Allegations against Tang include accusations of weakening the party’s leadership within the bank, failing to address and mitigate financial risks, engaging in activities with serious political implications, and resisting organizational scrutiny. Surprisingly, one of the charges involves the promotion of his calligraphy, as Tang has published several volumes of calligraphy and poems.

Chinese President Xi Jinping, reaffirming his commitment to eradicating corruption, recently pledged to intensify efforts against graft in the finance, energy, and infrastructure sectors. This initiative is part of a broader anti-corruption campaign that has been ongoing since President Xi assumed power in 2012.

As of April 2022, state-owned media reports indicate that approximately 4.7 million individuals have faced punitive measures for corruption-related offenses.

Tang Shuangning, who served as the vice president of the China Banking Regulatory Commission from 2003 to 2007 before his tenure as chairman of China Everbright Group, was first under investigation in July.

China Everbright Group is one of the dozen commercial banks founded in China in the early 1990s, with its shares listed on the Hong Kong and Shanghai stock exchanges. It is controlled by Central Huijin, a state-owned investment company.

Following Tang’s expulsion, his successor, Li Xiaopeng, also faced allegations of graft, resulting in his expulsion from the party and removal from public office.

This latest arrest adds to a growing list of financial executives facing repercussions for corruption in China. Notable cases include Sun Guofeng, a former senior official of the Chinese central bank, who was sentenced to over 16 years in prison for accepting bribes, and Sun Deshun, former president of state-owned China CITIC Bank, who received a life sentence for accepting bribes exceeding $130 million. Zhang Hongli, a former senior executive of the Industrial and Commercial Bank of China, the country’s largest bank, is also under investigation for alleged graft.