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China Minsheng branch chief detained over $240 mln in missing funds
April 28, 2017 / 1:44 AM / 8 months ago

China Minsheng branch chief detained over $240 mln in missing funds

HONG KONG, April 28 (Reuters) - 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 assist police.

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

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