Liu Jin's Surprising Resignation as Bank of China President Highlights Financial Fraud Concerns

Emerging Insights on Liu Jin's Resignation

Liu Jin has resigned as the vice-chairman and president of Bank of China, effective August 25, citing personal reasons. This surprising announcement follows a mere five months after his reappointment to the leading role at China’s largest global bank.

Background on Liu Jin and the Bank

Born in 1967, Liu has notably not reached the official retirement age of 60 for state-owned employees. His career at Bank of China began in April 2021, with previous roles at various state-owned institutions including the China Everbright Bank and the Industrial and Commercial Bank of China.

• Ge Haijiao, chairman of Bank of China, will temporarily serve as acting president.
• Liu Jin's absence from recent board meetings raises questions amid a looming investigation.
• The bank is currently switching auditors from PwC China to EY due to regulatory challenges involving past fraud cases.

Context of Resignation

Liu’s exit follows the resignation of Liu Liange, amid serious allegations of financial misconduct. Legal developments continue as Chinese authorities ramp up anti-corruption measures targeting significant state banks.

Bank of China shares traded down 0.9% to 7 yuan in Shanghai amid growing investor sentiment surrounding the bank's governance and potential implications of regulatory fallout.