THE former head of Chinese state-owned banking giant Everbright Group is under investigation for “severe violations” of the law, authorities said today, deepening an official crackdown on the country’s financial sector.

Li Xiaopeng – who previously served as Everbright’s party secretary and chairman – is being probed by Beijing’s anti-corruption watchdog, the Central Commission for Discipline Inspection (CCDI).

He is “under investigation for suspected severe violations of party discipline and laws”, a statement by the commission said. It did not share further details. 

Trained as an economist, Li has spent most of his career in the finance industry. 

He served in leadership positions at several major Chinese banks, before retiring from the chairmanship at China Everbright in March 2022.

The CCDI last month said it would launch an “inspection tour” targeting 30 state-owned-enterprises, including China Everbright Group and other major players in the country’s financial sector.

The news follows the announcement last week that Liu Liange, former chairman of the Bank of China, was also under investigation for “suspected severe violations of party discipline and the country’s laws”.

It also comes after the disappearance of Bao Fan, the billionaire chairman and executive director of investment bank China Renaissance, who was later revealed to be “cooperating” in an official investigation.

China Renaissance suspended trading in its Hong Kong-listed shares on Monday, saying the disappearance of its chairman meant it was unable to publish its annual results.

Bao is far from the first high-profile Chinese financier to fall foul of the authorities in recent years as President Xi Jinping leads an aggressive crackdown on alleged corruption.

In 2017, Chinese-Canadian businessman Xiao Jianhua was arrested by mainland authorities, receiving a 13-year jail sentence for corruption in August. – AFP, April 5, 2023.