On April 22, the website of the Central Commission for Discipline Inspection and the State Supervision Commission announced that Tian Huiyu, former party secretary and president of China Merchants Bank Co., Ltd., was suspected of serious violations of discipline and laws and was currently under disciplinary review and supervision and investigation by the State Supervision Commission of the Central Commission for Discipline Inspection.
In this regard, China Merchants Bank said that at present, Wang Liang, executive vice president of the company, presides over the work of China Merchants Bank, and the company's operation and management are normal.
Previously, on the evening of April 18, China Merchants Bank announced that the board of directors deliberated and passed the "Proposal on the Removal of Mr. Tian Huiyu", and agreed to remove Tian Huiyu from the position of president and director of China Merchants Bank, and to appoint him. It was agreed that Wang Liang would preside over the work of China Merchants Bank, effective from the date of deliberation and approval by the board of directors. Tian Huiyu did not attend the meeting for personal reasons. The next day, China Merchants Bank's stock price fell sharply at the opening, with the largest decline of more than 8%. At the close, there was a slight correction, down 7.35%, evaporating 86.756 billion yuan from the previous trading day.
According to public information, Tian Huiyu is 56 years old, a master of public administration and a senior economist at Columbia University in the United States. In May 2013, Ma Weihua, who had been the president of China Merchants Bank for 14 years, retired, and Tian Huiyu joined China Merchants Bank, and in September 2013, Tian Huiyu became the president of China Merchants Bank, which has been around for nine years.
On the 22nd, China Merchants Bank also released a first-quarter report that the company achieved operating income of 91.990 billion yuan, an increase of 8.54% year-on-year, and a net profit attributable to the shareholders of the Bank of 36.022 billion yuan, an increase of 12.52% year-on-year.
Frequent thunder, the "king of retail" a number of trust defaults
In recent years, China Merchants Bank, which has a market value of trillions, has been known as the "king of retail" in the consumer market, but under the aura of the king, there will inevitably be a shadow.
Since August last year, China Merchants Bank has been exposed to the news of stepping on the thunder trust many times.
On August 15, 2021, the collective fund trust plan of Daye Trust Junrui No. 15 (Jiutong Foundation) project with a scale of 500 million yuan sold by China Merchants Bank was materially defaulted, and the interest for the second quarter of 2021 was not distributed to investors. The trust plan has expired on August 14, 2021 and investors have not yet received a definitive plan for the distribution of trust benefits.
On August 16, China Merchants Bank responded that it was the distributor of the above-mentioned trust plan, and the issuer and active manager of the trust plan were Daye Trust. The trust funds of the trust plan were used to finance RMB500 million to Jiutong Foundation, an indirect wholly-owned subsidiary of Huaxia Happiness. Huaxia Happiness provides an irrevocable joint and several liability guarantee guarantee.
Previously, the progress of the incident was that Daye Trust had joined the Huaxia Happiness Debt Committee, and the Debt Committee had not yet announced the debt resolution plan.
It is worth noting that "Junrui No. 15" is the first time that the trust sold by CMB has defaulted on behalf of natural persons. According to media reports, Daye Trust Junrui No. 15 only has a guarantee, no collateral.
On November 28, 2021, the "Foreign Trade Trust - Furong No. 166 Evergrande Chengdu Tianfu Peninsula Project Collective Fund Trust Plan" sold by China Merchants Bank was overdue, with a total scale of 6.6 billion yuan, which was sold by China Merchants Bank. According to media reports, the plan has issued an extension announcement, and 1 to 1 to notify investors that they are overdue, and the payment will be deferred for up to 2 years.
Not long ago, on April 13, the "Minmetals Trust" product sold by China Merchants Bank was extended for 18 months, and the same series of products will expire one after another. According to public reports, a number of Minmetals International Trust investors complained that the "Minmetals Trust- Dingxing No. 1 Collective Fund Trust Plan" purchased through China Merchants Bank could not be redeemed after the expiration date on March 30, which was suspected of thunderstorms.
According to the Announcement on the Interim Information Disclosure of Minmetals Trust-Dingxing No. 1 Collective Fund Trust Plan, the total scale of Dingxing No. 1 Trust Plan is 194.05 million yuan. A trust industry analyst believes that from the data and solutions of Dingxing No. 1, if there is no strong risk control measures, the underlying assets are accounts receivable, lack of collateral, the debtor's own ability to repay debts is weak, basically relying entirely on the credit guarantee of the housing enterprise group, there are still certain risks.
Frequent complaints have led to a surge in the rate of non-performing loans in real estate
According to the Circular on Consumer Complaints in the Banking Industry in 2021 issued by the Consumer Rights and Interests Protection Bureau of the China Banking and Insurance Regulatory Commission, in the four quarters of 2021, the number of complaints about China Merchants Bank's wealth management business ranked first among joint-stock commercial banks in three quarters, and the first quarter ranked second in joint-stock banks. In addition, in the first quarter of 2021, the number of complaints about credit card business also ranked first in the national bank.
In addition, there is also a notable data is the real estate non-performing loan ratio. In 2019 and 2020, CMB's non-performing ratio of real estate loans was 0.44% and 0.30%, respectively, and in 2021, it rose sharply by 1.11 percentage points to 1.41%. Among them, the first half of 2021 and the second half of the year rose by 0.77 percentage points and 0.34 percentage points respectively.
By the end of 2021, the balance of CMB's domestic real estate broad caliber risk business was 511.489 billion yuan (including actual and contingent credit, bond investment, self-operated and wealth management non-standard investment and other businesses), an increase of 3.48% over the end of 2020, of which the balance of real estate loans of domestic companies was 355.977 billion yuan, an increase of 13.657 billion yuan over the end of 2020. At the same time, the non-performing ratio of CMB's domestic company loans in the real estate sector reached 1.39%, a sharp increase of 1.16 percentage points over the end of 2020.
In addition, in accordance with the requirements of the Notice on the Establishment of a Management System for the Concentration of Real Estate Loans of Banking Financial Institutions, CMB is a second-tier Chinese-funded medium-sized bank, with the upper limits of 27.5% and 20% of real estate loans and personal housing loans, respectively. In 2021, CMB's real estate loans to the public and retail ends accounted for 7.21% and 24.68% of all loans respectively (a total of 31.89%), exceeding regulatory requirements. Among them, personal housing mortgage loans accounted for more than 4.68 percentage points; real estate loans exceeded the standard by 4.39 percentage points.
He was punished frequently, and was fined 70 million for "27 deadly sins"
China Merchants Bank has also received regulatory fines on several occasions.
According to wind data, as of April 18, 2022, China Merchants Bank and its branches have been fined a total of 6.21 million yuan.
On March 25 this year, China Merchants Bank was fined 3 million yuan for 13 violations of laws and regulations in the data quality and data reporting of the (EAST) system.
Screenshot of the CBIRC fine
On May 21 last year, China Merchants Bank also received a huge fine of up to 71.7 million yuan. The CBRC fined 71.7 million yuan in accordance with the law for 27 violations of laws and regulations, such as china merchant bank's inadequate management and disguised lowering of the sales threshold of wealth management products through the internal transaction violations of affiliated non-banking institutions, interbank investment, wealth management funds, etc., such as illegal investment in land prices or real estate projects with incomplete "four certificates", and warned and punished 1 responsible person.
It is worth mentioning that when China Merchants Bank received heavy fines several times before, the stock market did not stir up any waves. On May 21 last year, it received a huge fine of more than 70 million yuan after hours, and on May 24, the next trading day, it rose slightly by 0.31%; on March 25 this year, it received a fine of 3 million, followed by a slight increase of 0.07% in the next trading day. None of them had as much impact as a rumor that day.
Tian Huiyu resume
In July 1987, he graduated from Shanghai University of Finance and Economics with a bachelor's degree in infrastructure finance and credit.
In October 2002, he obtained a master's degree in public administration from Columbia University.
From 1995 to 1996, President of Pudong Branch of Shanghai Construction Bank;
1998.07-2003.07, Vice President of Trust and Investment Company, China Cinda Asset Management Corporation;
2003.07-2006.12, Vice President of Bank of Shanghai;
December 2006 - July 2007, Vice President of China Construction Bank Shanghai Branch;
2007.07-2007.09, Main Person in Charge of Shenzhen Branch of China Construction Bank;
2007.09-2011.03, President of Shenzhen Branch of China Construction Bank;
From March 2011 to May 7, 2013, Director of Retail Business and President of Beijing Branch of China Construction Bank;
Since May 8, 2013, he has been the Party Secretary of China Merchants Bank;
Since May 9, 2013, he has been a candidate for executive director of China Merchants Bank;
Since May 31, 2013, he has been the President of China Merchants Bank.
He was investigated after leaving office in April 2022.
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China Merchants Group Special Party Committee Meeting: Taking Tian Huiyu as a Mirror Deep Reflection and Vigilance
According to the official website of China Merchants Bureau, Miao Jianmin, secretary of the party committee and chairman of the board of directors of China Merchants Group, presided over a special party committee meeting of China Merchants Group on the afternoon of the 22nd to convey the decision of the Central Discipline Inspection Commission and the State Supervision Commission to conduct a disciplinary review and supervision and investigation of Tian Huiyu's suspected serious violations of discipline and law. The Party Committee of the Group resolutely supports and resolutely supports the disciplinary review and supervision and investigation of Tian Huiyu suspected of serious violations of discipline and laws.
The meeting stressed that the group party committee resolutely unified its thinking and actions with the decisions of the party Central Committee and the State Supervision Commission of the Central Discipline Inspection Commission, took Tian Huiyu's suspected serious violations of discipline and law as a mirror, deeply reflected on it, and remained vigilant; the members of the group party committee should set stricter demands on themselves, better perform their political responsibility of managing the party and administering the party, and unremittingly push forward the comprehensive and strict management of the party in depth and in depth. All member units of the group's financial sector should be deployed in accordance with the arrangements of the group party committee, comprehensively compare with the feedback of the eighth round of inspection of the central government on the financial field, continuously enhance the political and people-oriented nature of financial work, continuously strengthen the feelings of financial service to the country, better serve the real economy, and more effectively prevent and resolve various financial risks.
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