Arrest of Huarong ex-chief symbolizes China’s war on corruption

The Tianjin Procuratorate on Wednesday ordered the arrest of Lai Xiaomin, former board chairman of China Huarong Asset Management Co. Ltd., who had been investigated by the discipline inspection organs of the Communist Party of China (CPC) for multiple violations.

The decision was made after the CPC Central Commission for Discipline Inspection (CCDI) and National Supervisory Commission conducted an investigation into Lai’s case in October.

Lai was found to have violated the central authorities’ principles and policies on financial work, and the company’s pellmell expansion and out-oforder operations have resulted in a serious deviation from its primary business, according to a CCDI statement in October.

He had pursued personal gratification, engaged in superstitious activities and refused to cooperate in the investigation, the statement said.

By attending banquets using public funds, visiting private clubs and luxury restaurants and allowing relatives to travel also with public funds, he violated the Party’s eight-point rules on improving Party and government conduct, it said.

Lai’s case shows that anticorruption struggles remain complicated while preventing and defusing financial risks continue to be tough, Bank of China’s Supervision and Management Committee said on November 1.

Lai worked at the Bank of China and was appointed to the China Banking Regulatory Commission in 2003.

Lai became Huarong Party chief and board chairman in 2012.