China investigates former Hengfeng Bank head for corruption

Hengfeng Bank, a national commercial lender mired in an internal power struggle and embezzlement allegations since May 2016, has undergone a major reshuffle of top leadership. Cai Guohua, chairman of Hengfeng Bank, was removed from his post and put under investigation for violations of party discipline, sources told Caixin. Wang Xiaoseng, head of the bank’s discipline inspection commission, was also removed from his post. Wang Hua, previously secretary general of the Shandong provincial government, has taken over the role as interim party secretary of Hengfeng Bank, the sources said. Wang Xifeng, previously party secretary and president of Bank of China‘s Shandong branch, is now the new president of Hengfeng Bank, which owned 1.2 trillion yuan ($181.84 billion) in assets as of the end of 2016. Hengfeng Bank, one of the country’s 12 national commercial banks, was put under the spotlight after an unnamed whistleblower accused Cai and others of misappropriating millions of yuan without approval from the board or shareholders.