The Ping An Bank in Shanghai has now become the latest target of anti-corruption authorities as part of China's broader crackdown on lapses in the country's financial sector. The bank, which is owned by the country's largest insurance company by market value Ping An Insurance, is reportedly now under investigation for alleged corruption activities.
According to reports citing sources close to the matter, the target of the investigation is apparently Ping An Bank's Shanghai chief, Leng Peidong. The executive has reportedly been asked by the corruption regulator Central Commission for Discipline Inspection to assist in the investigation earlier in the week.
Ping An had confirmed that Leng, who also serves as the assistant to the president of the bank, is currently being investigated. The bank only mentioned that the investigation was for "personal reasons" and did not elaborate further on the details.
A bank spokesman had stated that the company is actively cooperating with authorities and is willing to lend any help it can to get to the bottom of the issue.
Leng's predecessor, Yang Hua, is reportedly also being investigated by authorities. Some reports have speculated that the investigations could involve other employees from other banks. However, no concrete information has yet been uncovered to substantiate the claims.
Leng has been with Ping Bank for more than a decade, first joining the company in 2007.
The banking veteran quickly rose through the ranks and served as the president of Ping An Trust before taking up his current position in 2016.
News of the investigation has resulted in new concerns over the company's local branches. Investors have also started to raise concerns over the bank's practices, which has directly resulted in a drop in the company's stock. Following the release of the news, Ping An Bank's listed shares in Shenzhen fell by as much as 1.4 percent, finally closing 0.5 percent lower at the end of the trading day.
The newly launched investigations are part of China's broader "cleanup" initiative to curb corruption in the country's financial industry. Chinese President Xi Jinping mentioned in a Politburo meeting in February that he wants the involved agencies to properly educate and discipline senior executives of financial institutions to end the corruption in the sector.
The ramping up of China's anti-corruption campaign has resulted in a number of investigations this year. The most recent investigation was conducted against the chief executive of the state-owned company Jilin investment Group, Pan Zhongyu. The executive was arrested earlier in the week on suspicion of regulations violations.
