On December 29, 2023, the State Administration of Financial Supervision and Administration released a number of administrative penalty information disclosure forms. The penalized parties involved China Cinda Asset Management Co., Ltd. (hereinafter referred to as "China Cinda"), China Orient Asset Management Co., Ltd. (hereinafter referred to as "China Orient") and their branches and subsidiaries.
China Cinda was fined 13.4 million yuan
The State Administration of Financial Supervision and Administration fined China Cinda a total of 13.4 million yuan, including 9.4 million yuan for China Cinda Corporation and 4 million yuan for relevant branches, due to 11 major violations of laws and regulations, such as "the performance remuneration of employees in positions with an important impact on risks has not been deferred or the proportion of deferred payment is lower than that of regulatory regulations".
Due to the main violation of laws and regulations of "providing commitments for the transfer of non-performing assets in violation of regulations", the State Administration of Financial Supervision and Administration made an administrative penalty decision of "warning and a fine of 100,000 yuan" against Wang Xiaojun, then general manager of China Cinda Beijing Branch, Zhou Shun and Bi Jinyu, then deputy general managers of China Cinda Beijing Branch, and made an administrative penalty decision of "warning and fining 50,000 yuan" to Zhang Huajun, then deputy director of the Seventh Business Division (presiding over the work) of China Cinda Beijing Branch.
Due to the main violation of laws and regulations of "illegally providing working capital loans for equity capital increase in disguise", the State Administration of Financial Supervision and Administration made an administrative penalty decision of "warning and a fine of 100,000 yuan" to Wu Bin, then general manager of China Cinda Shenzhen Branch, and Ma Zhongkang, deputy general manager of China Cinda Shenzhen Branch, and Wang Lei, then director of the third business division of China Cinda Shenzhen Branch, to make an administrative penalty decision of "warning and a fine of 50,000 yuan".
Due to the main violation of laws and regulations of "covering up risks by buying and selling non-performing assets with other financial asset management companies", the State Administration of Financial Supervision and Administration issued an administrative penalty decision of "warning and fining 50,000 yuan" to Chen Weihong, then general manager of China Cinda Yunnan Branch, and Du Yun, deputy general manager.
The penalized parties also include Nanyang Commercial Bank (China) Limited (hereinafter referred to as "NCB China"). The institution, China Cinda, through its wholly-owned subsidiary, Nanyang Commercial Bank, is a wholly foreign-owned commercial bank in the Mainland.
Due to the main violation of laws and regulations of "failing to perform due diligence in accordance with regulations", the State Administration of Financial Supervision and Administration made an administrative penalty decision of "a fine of 500,000 yuan" against NCB China Foshan Branch, and issued an administrative penalty decision of "warning and fining 100,000 yuan" and "warning and fining 50,000 yuan" respectively to Wu Shangheng, then president of NCB China Foshan Branch, and Liao Zhichong, then account manager of NCB China Foshan Branch.
China Oriental was fined 18.1 million yuan
The State Administration of Financial Supervision and Administration fined China Orient Corporation 10.6 million yuan and 7.5 million yuan to relevant branches, totaling 18.1 million yuan, for 14 major violations of laws and regulations, including "major risks caused by imprudent credit extension to large customers, illegal termination of recognition of financial assets, and assistance to subsidiary banks to cover up non-performing assets through internal transactions and related party transactions".
Due to the main violation of laws and regulations of "being responsible for major risks caused by imprudent credit extension to large customers", the State Administration of Financial Supervision and Administration made an administrative penalty decision of "warning and fining 100,000 yuan" to Shi Shuang, then general manager of China Orient Investment (Investment Banking) Department, and Hu Xuemei, senior manager.
Due to the main violation of laws and regulations of "being responsible for the risks caused by the failure to perform due diligence in the pre-investment investigation and the formation of the case", the State Administration of Financial Supervision and Administration issued an administrative penalty decision of "warning and fining 100,000 yuan" and "warning" respectively to Wang Xiaoguang, then general manager of China Oriental Heilongjiang Branch, and He Dongmei, head of the department.
The State Administration of Financial Supervision and Administration issued a warning to Lv Qingyu, then account manager of China Oriental Shandong Branch, for the main violation of laws and regulations of "being responsible for the failure to perform due diligence in the investigation of the buyer of the acquisition and disposal of non-performing asset packages".
Among the punished parties also involved Bank of Dalian, a subsidiary of China Orient.
The State Administration of Financial Supervision and Administration imposed an administrative penalty of "a fine of 5.5 million yuan" on Bank of Dalian for three major violations of laws and regulations, including "issuing loans to small loan companies beyond the regulatory limit and providing financing for real estate projects in violation of regulations".
The State Administration of Financial Supervision and Administration issued a warning to Liu Gang, then assistant to the president of Bank of Dalian, Zhu Yanbin, then deputy general manager (presiding over the work) of the debt management business department of Dalian Bank, and Gao Wei, then a staff member of the debt management business department of Dalian Bank, for "false rectification, purchasing false wealth management of banks and realizing the second false off-balance sheet of non-performing assets with complex transaction structures".
Source: China Banking and Insurance News