Published April 19, 2017 | View complete press releases list |
Date: April 19, 2017
Categories: riskregulation, retail, Wealth Management
Keywords: CMB, Wealth Management
China Minsheng Banking Corp said it has notified police that the head of one of its branches is suspected of illegal conduct - a statement which follows local media reports of missing money from wealth management products.
Police are investigating Zhang Ying, president of the Hangtianqiao branch in Beijing, Minsheng said in a stock exchange filing late on Tuesday.
Business magazine Yicai, citing unidentified sources, said on Tuesday that Zhang was being investigated in connection with 3 billion yuan ($435 million) missing from Minsheng's wealth management products.
Aggressive expansion by mid-sized Chinese banks, particularly into wealth management, and whether sufficient compliance standards are being used has been an area of concern for investors.
Minsheng said it has set up a working group to assist police, adding that "the amount involved as reported by media" was still being investigated. It did not give Zhang's whereabouts.
A spokesman for the lender declined to comment or provide contact details for Zhang.
Re-disseminated by The Asian Banker from Reuters
