Liu Jin's Surprise Resignation from Bank of China amidst Financial Fraud Concerns

Liu Jin's Sudden Departure

Liu Jin has resigned as the vice-chairman and president of the Bank of China (BoC) effective August 25, citing personal reasons. His exit was unexpected as he had recently been reappointed. Previously, Liu held various senior roles in state-owned banks, including China Everbright Bank and the Industrial and Commercial Bank of China.

Context of Financial Fraud Investigations

This resignation coincides with heightened scrutiny from Chinese regulators concerning financial fraud cases, particularly involving influential lenders like the BoC and others. The bank recently faced issues with its auditor, PwC China, which has come under fire for its alleged role in the financial malpractices of the now-defunct China Evergrande Group.

Changes in Bank Leadership

Ge Haijiao, the current chairman of BoC, will step in as acting president until a permanent replacement is found. Liu Jin’s move follows a turbulent period for the bank and raises ongoing concerns about anti-corruption measures across China's financial sectors.

Market Reaction

• Bank of China shares dipped 0.9% to 7 yuan in Shanghai.
• The company’s stock rose slightly by 0.3% to HK$3.58 during the noon trading pause in Hong Kong.