(Yicai Global) July 31 -- Hu Huaibang, the former head of China Development Bank, is under investigation for suspected serious violations of the law and discipline -- the standard phrasing used to refer to corruption -- the Chinese Communist Party's top internal discipline body announced today.
Hu quit as chairman of CDB last September after more than five years at the lender. He previously also held posts at the People's Bank of China, the country's central bank, the China Banking Regulatory Commission, and was chairman of Bank of Communications.
There were early signs of Hu's fall from grace. His name first emerged a month after his resignation from CDB during the graft trial of Wang Sanyun, former vice chairperson of the National People Congress' Committee on Education, Science, Culture and Health. Wang went on trial at the Intermediate People's Court of Zhengzhou, Henan Province, on Oct. 11.
Hu's name cropped up twice in evidence that suggested Wang took bribes from Ye Jianming, founder of private energy company China CEFC Energy, footage of the public trial broadcast by China Central Television showed. The first piece of evidence showed that Wang helped CEFC Energy buy into Bank of Hainan through Hu, then chairman of Bank of Communications. The second piece of evidence indicated that Wang helped CEFC subsidiary CEFC Hainan International Holdings secure USD4.8 billion in funds from CDB when Hu served as the bank's chairman.
Founded in 1994, CDB is a policy financial institution directly under the State Council, China's cabinet, which disburses funds – medium- and long-term credit and investment – to support the Chinese economy. CDB had total assets of CNY16 trillion (USD2.3 trillion) as of the end of 2017. Zhao Huan, ex-president of Agricultural Bank of China, succeeded Hu as CDB chairman last year.
Editor: Dou Shicong