Zhao Leji’s “Three Tasks”
Reuters quoted a report from the Chinese Communist Party’s official Xinhua News Agency on September 27 as saying that Zhao Leji’s “inspection” was to “find” three issues related to “promoting services to the real economy, preventing and controlling financial risks, and deepening financial reforms.”
The institutions that will be “patrolled” also include: the Foreign Exchange Administration of the Communist Party of China, China Investment Corporation, China Development Bank, Export-Import Bank of China, Agricultural Development Bank of China, Industrial and Commercial Bank of China, Shanghai Stock Exchange, Shenzhen Stock Exchange , China Huarong Asset Management Co., Ltd., China Great Wall Asset Management Co., Ltd., China Orient Asset Management Co., Ltd., China Cinda Asset Management Co., Ltd., etc.
The Wall Street Journal reporter Wei Lingling explained on her personal Twitter that Beijing is conducting a comprehensive disciplinary inspection of the financial sector, covering regulatory agencies, large state-owned funds and state-owned banks. He is also very concerned about the political signals released by Xi Jinping.
Wei Lingling also attached to Twitter an article entitled “Preventing Leading Cadres from Being Kidnapped by Interest Groups” published by the Central Commission for Discipline Inspection of the Communist Party of China on September 25. The article named Xue Jining, the former party secretary and director of the Inner Mongolia Banking Regulatory Bureau, under the deep-corrosion hunting of “illegal financial groups” and “Baoshang Bank” to implement the Party Central Committee’s financial work decision and deployment to discount, make flexibility, and abandon supervisory duties.
According to an article by the Chinese Communist Party Commission for Discipline Inspection, Xue Jining, knowing that Baoshang Bank did not comply with the system and regulations for city commercial banks to set up remote branches, still required the former Inner Mongolia “Banking Regulatory Bureau” to report a consent opinion to the original “Banking Regulatory Commission”, enabling Baoshang Bank to successfully establish Shenzhen, Chengdu and Beijing branches.
Taiwanese media “Free Finance” reported on September 27 that since Baoshang Bank belongs to the “Tomorrow Department”, Xiao Jianhua, the head of the Tomorrow Department, is rumored to be the white glove of the former Politburo Standing Committee member Zeng Qinghong’s family. This time, it was directly classified as a “illegal financial group” by the Central Commission for Discipline Inspection, showing that Xi Jinping continued to cleanse the golden veins of political enemies. Moreover, the scope of the CCP’s large-scale “patrol” of financial and regulatory agencies is the first time since the CCP’s 18th National Congress of the Communist Party of China. The political signals released by Xi Jinping are particularly suspicious.
Xiao Jianhua was suddenly taken back to the mainland from the Four Seasons Hotel in Hong Kong by a powerful agency at the end of January 2017. It was later reported that the company was under investigation and the company was subsequently required to clean up its assets. The asset divestiture of the “Tomorrow Department” included the equity of more than 30 mainland financial institutions. After that, Xiao Jianhua never appeared in public again.
The Epoch Times report on September 27 sorted out the context of Xi Jinping’s cleanup of the “financial tiger” of the Jiang Zeng faction of the Chinese Communist Party in recent years.
The Epoch Times mentioned that the Beijing-based “Multi-dimensional” listed the “financial tigers” that fell after the “18th National Congress” of the Communist Party of China, and specifically named Lai Xiaomin, the former chairman of China Huarong Asset Management Co., Ltd.
Lai Xiaomin was charged with bribery of more than 1.788 billion yuan in property and more than 25.13 million yuan in embezzlement. He was executed on January 29 this year.
After Lai Xiaomin was investigated, a financial reporter in the circle disclosed a piece of information saying that looking at Huarong’s executive information, it can be found that many of them are Lai Xiaomin’s Jiangxi fellows, “also big fellows.”
Commentator Wang Youqun previously wrote that Lai Xiaomin’s back-end boss is his Jiangxi fellow and the second-ranked figure of the Jiang Zemin Group, Zeng Qinghong.
In addition to Lai Xiaomin, in July 2019, Hu Huaibang, the former party secretary and chairman of the China Development Bank, was investigated; in July and September 2021, Cai Esheng, former party committee member and vice chairman of the Banking Regulatory Commission of the Communist Party of China, China Development Bank He Xingxiang, a member of the party committee and vice president, was also investigated one after another.
Hu Huaibang once accepted bribes to help energy predators and head of China Huaxin Ye Jianming.
According to the evidence shown on the court hearing screen broadcast by the Chinese Communist Party CCTV, the former Gansu Provincial Party Secretary Wang Sanyun who fell from the horse once used Hu Huaibang, then chairman of the Bank of Communications, to provide assistance for the Shanghai Huaxin Company, a subsidiary of China Huaxin, to acquire a stake in Hainan Bank. In addition, Wang Sanyun also used Hu Huaibang, who was later chairman of the China Development Bank, to help China Huaxin obtain the 4.8 billion U.S. dollar quota from China Development Bank.
The mysterious head of China Huaxin Energy, Ye Jianming, was revealed by Caixin on March 1, 2018 and has been investigated by relevant departments.
Commentator Wang Youqun said that Ye Jianming broke out from 2009 to 2017 in Jiang and Zeng’s base camp-Shanghai, and in Jiang and Zeng’s two most profitable areas-finance and oil industries.
The Epoch Times reported that, starting from the end of last year, Xi Jinping has continued to sharply eliminate Internet technology giants and expand the elimination of multiple industries. The CCP’s latest large-scale “patrol” of financial and regulatory agencies is the first time since the 18th National Congress of the CCP. The political signals released by Xi Jinping have attracted attention.
Current affairs commentator Tang Jingyuan said that the greatest resistance to Xi Jinping’s 20th Dalian appointment has always come from the Jiang faction. Xi Lianhuan made moves to clean up all walks of life, starting with the rectification of Alibaba, and almost all the way down he was robbing the princelings of cheese in the financial circle and the Internet.
The timing of Zhao Leji’s “patrol” of the CCP’s financial supervision and financial institutions directly under it is also a cause for concern.
In recent days, the debt crisis of China Evergrande Group has continued to spread, bringing more and more panic to the financial sector and investment market.
Taiwanese media “Shang Bao” reported on September 27 that after President Xi Jinping of the Communist Party of China launched his second term in 2017, he regarded the control of financial risks as one of the “great battles”. As Xi Jinping’s possible third term will be Starting next year, if the Xi government cannot handle the Evergrande crisis, it may have a negative impact on the regime.
Judging from the current signs, Xi Jinping does not seem to show the willingness to directly help Evergrande.
According to multiple reports, the Chinese government believes that if the Evergrande crisis continues to worsen, Beijing’s series of financial tools will be sufficient to prevent financial panic.
The first financial regulatory agency to be “patrolled” this time is the Central Bank of the Communist Party of China. In order to alleviate the Evergrande crisis, the role of the Central Bank of the Communist Party of China seems indispensable.
In order to avoid China’s Evergrande financial thunderstorm and trigger financial system turmoil, the Central Bank of the Communist Party of China launched a reverse repurchase operation in the open market on September 17, and restarted the 14-day product after more than seven months, breaking the tens of billions in the past half month. Model, overweight to 100 billion. 100 billion RMB reverse repurchase operations were carried out on September 17 and 18 respectively, and 120 billion RMB reverse repurchase operations were carried out on the first day after the Mid-Autumn Festival holiday (September 22), plus 120 billion RMB on September 23. In the past four trading days, the Central Bank of the Communist Party of China has injected 440 billion yuan into the market.
At a time when the Evergrande crisis may spread to the financial sector, the Central Bank of the Communist Party of China adopted a short-term large-scale release to suspend market anxiety, which seems to reflect Xi Jinping’s willingness to not directly help.
Commentator Gu Chunqiu said that the 20th National Congress of the Communist Party of China next year will reveal whether Xi Jinping can be re-elected. At this sensitive moment, Xi Jinping’s “confidant” Zhao Leji conducted “patrols” on the CCP’s financial regulators and major financial institutions. It seemed that he had the same intention as the original attack on Ma Yun. They all wanted to warn his political opponents that he is now in China. Forget it”.
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