HONG KONG, April 28 China Minsheng Banking Corp
said on Friday the head of one of its branches and
some staff have been detained and are being investigated in
connection with missing funds worth 1.65 billion yuan ($240
million) involving more than 150 customers.
Last week, the Chinese bank said it had notified
police that the head of one of its branches was suspected of
illegal conduct after media reports of missing money from wealth
management products. It said it had set up a working group to
In a statement to the Hong Kong stock exchange on Friday,
China Minsheng said it would adopt "feasible ways" to resolve
the issue. It did not elaborate.
It said Zhang Ying, the president of its Hangtianqiao
sub-branch, had defrauded customers by using forged wealth
management contracts and bank seals. The funds raised did not
enter the bank's accounting system, it added.
"This operational risk incident was triggered by one
individual's moral hazard, and is suspected of being illegal
conduct," China Minsheng Chairman Hong Qi said in the filing.
The bank said it was collaborating with police and cash,
property and goods belonging to the suspects had been seized.
($1 = 6.8958 Chinese yuan renminbi)
(Reporting by Donny Kwok; Editing by Stephen Coates)