2023-04-04

Huang Xianhui, 60 years old this year, has served successively in the People's Bank of China and Industrial and Commercial Bank of China. He joined China Huarong Asset Management in 2000. He once organized Huarong Zhiyuan, served as a director and general manager, and held leadership positions in Huarong Yufu, Huarong North and other places.

(Beijing/Chengdu/Shenzhen News) On Monday (April 3), the website of the Central Commission for Discipline Inspection of the Communist Party of China and the National Supervision Commission reported that Huang Xianhui, the former secretary of the Party Committee and general manager of China Huarong Asset Management Asset Management Co., Ltd. Beijing Branch, was suspected of serious violations of duty and was under supervision and investigation.

Comprehensive Red Star News and China Fund News reported that Huang Xianhui, 60 years old this year, once worked in the People's Bank of China and Industrial and Commercial Bank of China. He joined China Huarong Asset Management in 2000. He once organized Huarong Zhiyuan as a director and general manager, and held leadership positions in Huarong Yufu, Huarong North and other places.

According to the information on China Huarong Asset Management's website, the company, formerly known as China Huarong Asset Management Asset Management Company, was founded in 1999. It is one of the four state-owned Asset management in China established to deal with the Asian financial crisis, defuse financial risks, and promote the reform of state-owned banks and the rescue of state-owned enterprises.

Huang Xianhui's investigation shows that China Huarong Asset Management's anti-corruption work is still deepening. Previously, Lai Xiaomin, the former Secretary of the CPC Committee and Chairman of the Board of CFA, was executed in 2021 due to the crime of bribery, corruption, bigamy and other crimes, involving more than 1.788 billion yuan (RMB, the same below, S $345 million). This case was called the largest financial corruption case since the founding of the Communist Party of China in 1949.

After that, China's financial system continued to reflect on and eliminate the impact of the Lai Xiaomin case. Last February, the 13th Inspection Group of the Central Committee of the Communist Party of China fed back the inspection opinions to the China Huarong Asset Management Party Committee, saying that China Huarong Asset Management had problems such as insufficient reflection on the Lai Xiaomin case and insufficient thorough elimination of the impact. At the same time, the inspection group also received clues about some leading cadres' problems, which have been transferred to the Central Commission for Discipline Inspection, the National Supervision Commission, the Organization Department of the Central Committee and other relevant parties for handling as required.

In March this year, the Ministry of Finance of China imposed an administrative penalty on China Huarong Asset Management and its auditor Deloitte Huayong, and imposed a fine of 100000 yuan each on China Huarong Asset Management and its seven subsidiaries, totaling 800000 yuan. The reason is that from 2014 to 2019, China Huarong had problems such as ineffective internal control and risk control, and serious distortion of accounting information.

At the end of March, China Huarong Asset Management released the 2022 annual performance announcement, and the annual net loss attributable to the common shareholders of the Company is expected to be 27.6 billion yuan, which is another significant loss after the loss of 102.9 billion yuan in 2020.

China Huarong Asset Management completed reform and restructuring last year, and CITIC Group settled in China Huarong Asset Management and became the largest shareholder. At the performance conference held at the end of last month, Liu Zhengjun, chairman of China Huarong Asset Management Asset Management Co., Ltd., said that in 2023, China Huarong Asset Management will strive to "get on track one year" and strive to establish a modern financial enterprise with standardized corporate governance and operation management.