Death with reprieve for corrupt ex-bank boss

Tian Huiyu, former president of China Merchants Bank, was given the death penalty with a two-year reprieve for crimes including taking bribes, abuse of power, using undisclosed information for trading, insider trading and leaking insider information, the Changde Intermediate People’s Court in Hunan province announced on Monday.

For taking bribes, Tian received a death sentence with a two-year reprieve, lifelong deprivation of political rights, and confiscation of all personal property. Additionally, he was sentenced to five years in prison for abuse of power.

Regarding using undisclosed information for trading, Tian was handed a seven-year prison term and fined 300 million yuan ($42 million). Furthermore, for insider trading and leaking insider information, he was sentenced to three years in prison and fined 8.5 million yuan.

Proceeds from Tian’s crimes and their gains were confiscated and will be directed to the State treasury.

According to the court, from 1997 to 2022, Tian exploited his various positions, including as vice-president of China Cinda Trust Investment Corporation, vice-president of Shanghai Bank, head of the Shenzhen and Beijing branch of China Construction Bank, and president of China Merchants Bank, to provide assistance to certain entities and individuals in loan approvals, business solicitation and job arrangements, illicitly receiving over 210 million yuan.

While serving as the president of China Merchants Bank, Tian abused his authority, intervened in the normal operational decision-making activities of the bank’s subsidiaries, leading to significant losses to national interests.

He also engaged in securities trading activities using undisclosed information obtained due to his position, resulting in gains exceeding 290 million yuan.

Furthermore, Tian purchased securities before the relevant information was disclosed, and even leaked inside information, explicitly or implicitly influencing others to engage in such transactions, resulting in profits exceeding 8 million yuan.

Due to the extraordinarily large amount of bribes, the severe circumstances and consequences, as well as the substantial harm caused to national and public interests, the court deemed a death penalty appropriate.

Considering his voluntary confession, active return of illicit gains, and the complete recovery of all proceeds, Tian’s actions presented legal circumstances warranting leniency or mitigation of punishment.

Tian, 58, a native of Anhui province, has worked in the finance and banking sectors for a long time. He held the position of the president of China Merchants Bank from May 2013 to April 2022.

He was placed under investigation in April 2022, and expelled from the Party, removed from his positions and arrested in October 2022.

Prosecutors in Changde initiated a prosecution against him in February 2023. The court heard his case in November, where he pleaded guilty.