Former Bank Chairman Given Suspended Death Sentence

A court in Shandong province has sentenced the former chairman of Hengfeng Bank, Cai Guohua, to death with a two-year reprieve after convicting him of abuse of power, corruption, embezzlement, receiving bribes and illegal loans.

If Cai commits no further crime over the next two years, his sentence will be commuted to life imprisonment, the Dongying City Intermediate People's Court said in a statement on its Weibo social media platform on Friday.

Last year, Cai's predecessor Jiang Yunxi was also found guilty of corruption and sentenced to death with a two-year reprieve.

Hengfeng bank, based in Shandong province, has been undergoing restructuring since 2017 when the banking and insurance regulatory watchdog appointed its staff to head up the lender due to management and liquidity issues.

In January, the bank received 100 billion yuan in strategic investment through a share sale to state and foreign investors. (Reuters)