Date
23 August 2017
An intense power struggle is reportedly taking place at Minsheng Bank following the resignation of the lender's president. Photo: CNSA
An intense power struggle is reportedly taking place at Minsheng Bank following the resignation of the lender's president. Photo: CNSA

Anti-graft probe said to fuel power struggle at Minsheng

Shi Yuzhu, shareholder and former non-executive director of China Minsheng Banking Corp. Ltd. (01988.HK, 600016.CN), said he has no intention of replacing Mao Xiao-feng, who resigned as the lender’s president earlier this month, the Hong Kong Economic Journal reported Monday.

Mao is said to have been detained since January by the Central Commission for Discipline Inspection of the Communist Party of China in connection with the anti-graft investigation into Su Rong, former vice chairman of the Chinese People’s Political Consultative Conference, and Ling Jihua, former head of the United Front Work Department of CPC Central Committee. 

Shi said the bank should openly recruit a new president and vowed to oppose any appointment from outside the bank by political leaders. 

He made his comments in his microblog, leading to speculation that different groups of directors and shareholders are engaged in a vigorous power struggle inside the privately owned bank.

According to the lender’s articles of association, amended last November, the appointment of the president will require the approval of the bank’s directors and the China Banking Regulatory Commission. 

The bank had earlier told investors that it would elect a new president during the annual general meeting in April or May.

Anbang Insurance Group Co. Ltd., the holding company that has been raising its stake in the bank and is said to be controlled by second-generation Communist Party cadres, is reportedly appointing its own representatives to the bank’s board.

Translation by Vey Wong

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