[The Epoch Times, May 21, 2022](Comprehensive report by Dongfang Hao, reporter from The Epoch Times Special Department) Director of the Monetary Policy Department of the People’s Bank of China (Central Bank of China)Sun Guofeng,The People’s Insurance Company of ChinaSubsidiary Investment Holding Co., Ltd. (PICC investment control) Former Party Committee MemberSu XinfaDisappeared within two days. Sun Guofeng is an indicator of China’s monetary policy. Before Su Xinfa fell from the horse,PICC investment controlFormer president Liu Hong and vice president Liu Jidong have been investigated one after another.
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Former Party Committee Member of PICC Investment ControlSu Xinfachecked
On May 19, the official announcement stated that Su Xinfa, a former member of the Party Committee of PICC, was investigated.
Su Xinfa, born in November 1966, is a native of Wuhan City, Hubei Province, and joined the People’s Insurance System in November 2007. From November 2010 to March 2011, Su Xinfa served as the deputy general manager of Beijing West Chang’an Avenue No. 88 Development Co., Ltd.; from March 2011 to February 2017, served as the company’s employee director, vice president and member of the party committee; 2017 From February 2019 to November 2019, he served as a member of the Party Committee of PICC Investment Control. In November 2019, Su Xinfa was removed as a member of the PICC Investment Control Party Committee; in March 2021, he resigned.
PICC Investment Control was established on August 23, 2007.The People’s Insurance Company of ChinaWholly owned subsidiary. PICC Investment Control is a real estate and pension investment management platform under the PICC Group. Its business areas cover real estate investment, project construction management, real estate operation, pension industry investment, property management and services. According to the financial report, as of the end of 2021, PICC Investment has total assets of 6.7 billion yuan and net assets of 5.082 billion yuan. In 2021, the net profit of PICC Investment Control will be 246 million yuan.
Liu Hong, the former president of PICC, and Liu Jidong, the vice president, were investigated one after another
In addition to Su Xinfa, many senior executives from PICC Investment Control were also investigated.
In March 2019, Liu Hong, the former secretary of the party committee and president of PICC, was sacked. On August 31, 2020, Liu Hong was sentenced to 13 years in prison and fined 2 million yuan.
From 2010 to 2019, Liu Hong was accused of taking advantage of his positions as secretary of the Party Committee and President of PICC Investment Control to accept requests from relevant units and individuals, and to seek benefits and accept requests for trustees in financial business activities, equity transfer, personnel work arrangements, etc. Equity and RMB, gas cards, shopping cards and other property, a total of 30.578223 million yuan.
Three months after Liu Hong was investigated, in June 2019, Liu Jidong, former member of the party committee and vice president of PICC Investment Control, was also investigated.
Since 2022, several senior executives in the insurance industry have been sacked.
On January 4, 2022, Xu Dunpeng, the former Secretary of the Party Committee and General Manager of the Fujian Branch of China Export & Credit Insurance Corporation, was arrested; on January 8, Wang Bin, Secretary of the Party Committee and Chairman of China Life Insurance (Group) Company, was sacked; on April 26 , Shao Li, the former deputy secretary of the party committee and deputy general manager (in charge of the work) of Taiping Property & Casualty Insurance Inner Mongolia Branch, fell; Shen Shuhuan, member of the party committee and assistant to the general manager of the Ningbo Branch of China Export & Credit Insurance Corporation, sacked.
Director of the Currency Department of the Central Bank of the Communist Party of ChinaSun GuofengLama’s wife was investigated on the same day
On May 18, the official announcement said that Sun Guofeng, director of the Monetary Policy Department of the Central Bank of the Communist Party of China, had been sacked.
According to Caixin.com, after Sun Guofeng arrived at the central bank on the morning of May 18, he was notified of his dismissal and investigation; and his wife, who works at China Central Depository & Clearing Co., Ltd., a subsidiary of the central bank, was also placed on lien on the same day.
According to the report, the news of Sun Guofeng’s investigation was disclosed that evening, which shows that the investigation against him should last for a period of time.
Sun Guofeng’s comments are mixed inside and outside the central bank. Because he has been engaged in the open market business for many years, most of the bond market are impressed by him, saying that he has strong professional ability; but many people who have come into contact with him call him arbitrary and have internal criticism.
According to the report, in the second half of 2021, Sun Guofeng was reported by a real-name social worker working in the central bank because of his personal style. Although there was no external impact for a while, there have been constant rumors about him being investigated and possibly being transferred out. The news that led to his investigation this time did not shock the outside world too much.
“Cao Shanshi”, a well-known financial whistleblower, posted on Twitter, “Sun Guofeng, the former director of the Monetary Policy Department of the Central Bank, was reported by his real name last year because of the relationship between men and women, and he passed the border safely. This time he was investigated together with his wife, indicating that it is not a personal life style issue. .”
Sun Guofeng, born in July 1972, is a native of Heihe, Heilongjiang, with a doctoral degree. After graduation, he joined the Central Bank of the Communist Party of China and worked for the Monetary Policy Department most of the time. He successively served as Deputy Director of the Open Market Business Division of the Monetary Policy Department, Director of the Foreign Exchange Business Division, and Deputy Director of the Monetary Policy Department. In 2016, he was promoted to director of the Financial Research Institute of the Central Bank of the Communist Party of China, and returned to the helm of the Monetary Policy Department in August 2018.
Sun Guofeng is an indicator of monetary policy in China’s financial circle
The Monetary Policy Department of the Central Bank of the Communist Party of China is in charge of researching and formulating monetary policy control plans, domestic and foreign currency deposit reserve policies, open market operation plans and operating procedures, etc. It is the core unit for operating the RMB exchange rate and monetary policy.
Sun Guofeng’s last public appearance was on April 14, when the Central Bank of China held a press conference on financial statistics for the first quarter of 2022. China’s economy continued to decline, and the RMB continued to depreciate at that time, and whether the central bank lowered the reserve requirement caused concern.
Sun Guofeng said at a press conference at the time, “In the next step, the central bank will use monetary policy tools such as RRR cuts in a timely manner to further increase financial support for the real economy.”
On April 25, the Central Bank of China announced to cut the reserve requirement ratio, cut the deposit reserve ratio of financial institutions by 0.25 percentage points, and released about 530 billion yuan of long-term funds, but did not cut interest rates.
The Central News Agency reported on May 18 that in China’s financial circle, Sun Guofeng has been a monetary policy indicator for many years, often attending forums, publishing articles and publishing several professional books. His abrupt dismissal and investigation have sparked market discussions about whether it was involved in corruption or policy gain.
People familiar with the matter: The central bank is not fully aligned with the central government
The Wall Street Journal, citing people familiar with the matter, said on May 19 that Sun Guofeng, a senior official at the central bank, was under investigation for allegedly leaking official economic statistics after Beijing criticized the central bank for not being sufficiently aligned with the central government.
The investigation focused on whether Sun Guofeng shared macroeconomic indicators, such as measures of inflation, with individual bond traders at certain financial institutions in exchange for personal gain, the people said.
The inspection team of the Central Committee of the Communist Party of China has been stationed in 25 financial institutions including the Central Bank of the Communist Party of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission since October last year. When it completed the inspection in February this year, it said that some institutions lacked awareness of preventing and defusing financial risks, and even resorted to supervision for personal gain. Integrity risks, etc.
The Wall Street Journal, citing sources at the time, reported that this was the result of General Secretary Xi Jinping’s request to examine whether state-owned banks and financial institutions had too close ties with the regulated Ant Group and private companies such as Evergrande, which was in debt crisis; and also asked the central bank not to issue and The central attitude is inconsistent.
On April 29, the Political Bureau of the Central Committee of the Communist Party of China held a collective study on the “healthy development of capital”. Xi Jinping said at the meeting that “anti-corruption” in the field of capital should be strengthened.
An analysis by China expert Bill Bishop in the newsletter Sinocism shows that more “capital”-related corruption cases will be disclosed in the future.
Mainland financial media “21st Century Business Herald” reported on May 13, combing the websites of the central and local discipline inspection commissions, at least 24 senior financial system officials have been investigated since 2022; China Banking Regulatory Commission) 2, and the rest are mainly executives of large state-owned banks, joint-stock banks, and city commercial banks.
Editor in charge: Lian Shuhua
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