SHANGHAI, Sept 6 Chinese police are
investigating three banking veterans in the bond market for
illegal dealings, financial magazine Caixin reported on its
website on Tuesday, as regulators toughen their stance on bad
behavior in financial markets.
Authorities in the eastern Chinese city of Xuzhou took away
the three senior bankers on suspicion of making illegal profits
via trades of medium-term notes and short-term bills, Caixin
reported, citing unidentified sources.
The three bankers included a vice general manager at
Industrial and Commercial Bank of China (ICBC), the
head of asset management at Hengfeng Bank and the head of a
subsidiary of BOSC Asset Capital Management, Caixin said.
Reuters could not immediately reach Hengfeng Bank for
comment and ICBC declined to give immediate comment. BOSC Asset
Capital Management said the executive, named as Feng Jian, had
not been seen in the office recently, but declined to comment
Reuters could not immediately reach Feng for comment.
If confirmed, the investigation would be the latest in a
string of scandals and investigations in Chinese financial
markets over the past several years spanning stocks and fixed
The regulatory environment for finance has become much
stricter, many market insiders say, since a stock crash in 2015
which was partly blamed on illegal practices at brokerages.
Although most high-profile investigations have centered
around equities and bank bills, there have also been cases
related to bonds.
In April, 2013, state media reported that three Chinese
financial industry executives had been arrested for allegedly
using complex bond trading practices to skim clients' profits
for personal gain.
(Reporting by Samuel Shen and Adam Jourdan; Editing by Kim