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Chinese commercial bank chairman killed, stabbed in office, ex-subordinate held: report
- Bank of Handan chairman Zheng Zhiying died in hospital on Thursday having been allegedly killed by his former employee, according to reports
Banking & finance
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Mandy Zuoin Shanghai
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Published: 5:07pm, 16 Aug 2024
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The chairman of a state-controlled commercial bank in northern China’s Hebei province died in hospital on Thursday having been allegedly killed by his former subordinate, in a rare case that has shocked the financial community amid Beijing’s push to strengthen regulation of the key sector.
Zheng Zhiying, the 61-year-old chairman of the Bank of Handan, a regional lender with 231 billion yuan (US$32.3 billion) worth of assets, was stabbed in his downtown office on Thursday morning, the 21st Century Business Herald reported, citing information from a local government official.
In a statement, local police named only Zheng as a victim and said 54-year-old man surnamed Song had been detained, pending further investigation.
Chinese media outlets reported that Song had been sacked from his role as a branch head. No reason for the lay-off was provided.
Local police, several bank branches and subdistrict offices did not answer requests for comment by phone.
The killing comes at a time when Chinese financial institutions are facing unprecedented pressure in terms of business operations and Beijing’s anti-corruption campaign.
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Many banks, which were instructed to align their business with Beijing’s grand plan of serving the real economy and tightening regulation, have been reducing staff or cutting bonuses and salaries this year.
Zheng had been appointed bank president in 2005 before being promoted to chairman in 2014.
Zheng Zhiying, the 61-year-old chairman of the Bank of Handan. Photo: Weibo
But complaints about Zheng occupying the job for longer than allowed had been circulating online since earlier this year, after a 2019 directive from the then-top banking regulator dictated that key personnel in important positions could serve a maximum of seven years.
The Bank of Handan’s revenue totalled 3.4 billion yuan (US$475 billion) last year, up by 10.62 per cent from a year earlier, according to its 2023 annual report released in April.
Last year, its profits plunged by 45.81 per cent, year on year, to 621 million yuan, while its non-performing loan ratio climbed from 1.9 per cent in 2022 to 2.24 per cent.
Some of its bond holdings have reported defaults in recent years, forcing the bank to increase its provision to cover asset-impairment loss.
According to a report issued by credit rating agency Dagong earlier this year, the bank’s non-performing loan ratio was higher than its peers, with Bank of Handan facing pressure of worsening asset quality.
The bank hired a new president in April.
As part of its de-risking efforts, Beijing has been pushing for mergers and acquisitions of small and medium-sized banks.
In the first half of the year, more than 80 banks were merged and reorganised, according to a report by local news portal Dahe.
Additional reporting by Luna Sun
