AgBank exec investigated for corruption

An executive vice-president of Agricultural Bank of China (601288.SH, 1288.HKG), the country’s third-largest bank by assets, has been detained by Communist Party authorities in connection with a corruption scandal, the Financial Times reported. The executive, Yang Kun, was responsible for a portfolio that included corporate banking and real estate lending. Financial news outlet Caixin reported that the investigation centers on Yang’s business relationship with a property developer, and that the two were involved in a “gambling incident.” If convicted, Yang would be the highest-ranking Chinese bank official to be involved in a corruption scandal since 2005.  Earlier this year, an AgBank branch manager from Jiangsu province fled the country with what police said were more than RMB100 million (US$15.7 million) in fraudulently borrowed funds. The bank’s Hong Kong-listed shares have fallen 5% since news of Yang’s detention broke on Wednesday afternoon.