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China’s Minsheng Bank has confirmed one of its branch managers in Beijing is under investigation after mainland media reported the same on Tuesday, sending its shares tumbling to the lowest level in nine months.
The bank said in a stock exchange filing on Wednesday morning that it had discovered Zhang Ying, president of its Beijing branch’s Hangtianqiao sub-branch, was “suspected of illegal conduct and the Company immediately reported the case to the police department.”
Minsheng Bank did not confirm details from mainland Chinese media reports that prompted its Hong Kong-listed stock to close on Tuesday down 2.8 per cent to HK$7.90 – the lowest level since July 20 – saying the “amount involved and the specific facts of the case as reported by certain media are still under investigation”.
Chinese news magazine Caixin on Tuesday morning reported that Mr Zhang had been detained by authorities in Beijing and that police had searched his home and office. It cited multiple unnamed sources as saying he had taken around Rmb3bn from wealth management funds to use in issuing a loan without official approval.