Ex-China Huarong Chief Hid USD29 Million at Lavish Homes, CCTV Reveals
Liao Shumin
/SOURCE : yicai
Ex-China Huarong Chief Hid USD29 Million at Lavish Homes, CCTV Reveals

(Yicai Global) Jan. 14 -- Lai Xiaomin, former chairman of China Huarong Asset Management, had stashed away CNY200 million (USD29 million) in cash at his houses, according to a state-backed TV show. 

Lai had a complex system of safes at his homes and he also hid away luxury cars, gold, and valuable art, National Supervision that aired on CCTV yesterday revealed. 

Last February, China's highest procuratorial organ charged Lai with bribery, corruption, and bigamy, concluding his six-year career heading one of China's four big bad banks amid the country's war against graft.

Lai received significant benefits in exchange for "aid" and steered the firm to take part in illegal projects, the Supreme People's Procuratorate said at that time.

China has been fighting corruption with a broadening scope into boardrooms. Hence, last year saw some tough verdicts. For example, a Chinese court sentenced Hengfeng Bank's ex-chairman to death with a two-year reprieve last December, citing graft.

Lai, who used to serve the China Banking Regulatory Commission and the Beijing Banking Regulatory Bureau, was arrested in 2018. That year, the Beijing-based firm's net profit dropped to CNY1.5 billion (USD218 million) from the previous year's CNY22 billion (USD3.2 billion), partly due to increasing interest expenses. In the first half of 2019, it made a net profit of CNY2.5 billion with assets of CNY1.71 trillion (USD248 billion).

China Huarong's shares [HKG: 2799] rose 0.8 percent to HKD1.32 (US 17 cents) this morning. 

Editor: Emmi Laine

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Keywords: Corruption , China Huarong Asset Management