Xie Ping: Huijin Investment head removed from his post

On April 8, China Investment Corporation (China Investment) declared that Xie Ping, general manager of Central Huijin Investment Ltd (Huijin), a company under China Investment, was sacked from the position of general manager. However, Xie Ping also stays in the position of vice general manager of China Investment.

Xie Ping had been the general manager of Huijin since the foundation of the company six years ago. His removal which had no premonition shocked the Chinese financial industry. Though China Investment didn’t give out the reasons, the rumors had arisen.

Huijin was founded in December 2003. It is an exclusively state-owned company registered by China’s State Council, or Cabinet, with the registered capital of 552.1 billion yuan (USD 80.9 billion). In September 2009, China Investment was founded and Huijin became a subsidiary of the new company.

Now, Huijin held 57.9% shares of China Construction Bank, 67.53% shares of Bank of China, 35.42% shares of Industrial and Commercial Bank of China and 50% shares of Agriculture Bank of China. Though Huijin controls most of the shares of these state-owned commercial banks, it can not intervene in their operation and businesses.

There are rumors saying about Xie Ping’s malpractice in sending directors to these state-owned banks. It is said that Xie Ping positioned many middle-level officials from the Ministry of Finance and Foreign Exchange Administration in the boards of directors of these commercial banks. However, most of these people were not qualified according to the laws and regulations.

A source said that Xie Ping had no severe actions of breaking laws and regulations. That’s why his position as the vice general manager was remained.

Xie Ping had been the head of the Research Institute of People’s Bank of China. He is a veteran expert in the Chinese financial industry.