China investigates high-ranking debtor for corruption

China is investigating the vaccination of the executive branch of one of the state-backed catastrophic debt managers, six months after the execution of a former high-ranking bank official on corruption charges.

Hu Xiaogang, vice president of China Great Wall Asset Management, is under investigation by the Central Disciplinary Commission, the country’s anti-corruption watchdog, on suspicion of “serious” violations, according to a statement issued by the China Banking and Insurance Regulatory Commission.

The investigation is the latest indication of possible financial misconduct among China’s top “bad debt” asset management companies as concerns mount over their high debt levels and falling profits.

Groups including Huarong Asset Management և China Cinda Asset Management strengthens control By regulators և investors, when Beijing struggles with risky elements in the country’s financial system that it believes threaten economic stability.

The CBIRC statement referred to Hu’s previous role as vice president of China Orient Asset Management, another major debt investor, who suggested the allegations were linked to his nearly two decades in the group, not his role on the Great Wall. :

China’s four largest debt managers were created in the late 1990s after the Asian financial crisis. They were designed to reduce the risks of the country’s largest sovereign creditors by removing bad debts from their books before they were listed on the stock exchange.

But the groups have become a A serious problem for Beijing after accumulating more than $ 100 billion in debt, aggressively expanding into areas beyond their spheres, growing into financial conglomerates.

While Huarong և Cinda are listed in Hong Kong, Great Wall և Orient remains private. According to S&P, all four significantly expanded their foreign assets in 2015-17.

Huarong, China’s biggest catastrophic investor, owes $ 22 billion Intense market pressure due to delays in publishing annual results. Shares listed by the company in Hong Kong were suspended in April, while its bond prices were volatile.

Huaong’s 58-year-old former CEO Lai Xiaomin was executed in January after receiving a $ 280 million bribe and pleading guilty to other crimes.

The remarks are a sign of the endurance of Chinese President Xi Jinping for many years of anti-corruption drive. The campaign is seen by experts outside China as a means of targeting deeply entrenched government և corporate vaccinations, while threatening potential opponents of Xi’s rule within the Communist Party.

Debt problems of reliable credit managers by the state also appeared against the background of growing concern of international investors record number of preset numbers ուկ sharp growth downgrading hits the financial sector of China. More than $ 100 billion in debt owed by Chinese companies is due this year.

In response to China The Ministry of Finance is discussing The transfer of shares in the fourth debt of the state’s debt to a new holding company as a way to further jeopardize the financial system, Bloomberg News reported last month, citing anonymous sources.

Bonds on the Great Wall fell slightly on Wednesday, selling the dollar at 97.8 cents.

Additional report by Sherry Fei Ju in Beijing

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button