Chain reaction of China Merchants Bank

Hello friends, I am the pavilion owner, and the biggest advantage of China Merchants Bank has come to fruition.

In April of this year, China Merchants Bank removed Tian Huiyu from the positions of president and director of China Merchants Bank. China Merchants Bank’s stock price fell 7.4% after hearing the news . At that time, rumors were flying all over the sky, but the result was indeed consistent with the rumors, and Tian Huiyu was taken away.

At the end of April, the news was officially confirmed. According to the website of the Central Commission for Discipline Inspection and the State Supervision Commission, Tian Huiyu was suspected of serious violations of discipline and law , and accepted the disciplinary review and supervision investigation of the Central Commission for Discipline Inspection and the State Supervision Commission.

At this time, some funds felt that the situation was not good, and continued to reduce their positions in China Merchants Bank, which caused the share price of China Merchants Bank to drop from 55 yuan last year to about 33 yuan now .

China Merchants Bank

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The big white horse of A-shares, the bank leader, has no bottom line when it falls.

I took a look. As of the third quarter, China Merchants Bank still has 570,000 shareholders holding on, but after today’s investigation on Tian Huiyu comes out, the trend of China Merchants Bank next Monday is really worrying.

I think generally bad news is a good thing, but the wording of this investigation is so harsh that it even makes me worry about the entire banking sector, especially commercial banks.


I will post the original survey below:

After investigation, ①Tian Huiyu, as a leading cadre of party members who have worked in the financial field for a long time, has lost his ideals and beliefs, deviates from his original mission, and is not resolute and discounted in implementing the major decisions and arrangements of the CPC Central Committee on financial work, ignoring the party’s leadership and financial work. The political and people-oriented nature of the work puts the responsibilities and missions behind.

②Ignoring the spirit of the eight central regulations, illegally accepting banquets, tourism, golf and other activities arrangements, and illegally accepting gifts .

③ Not reporting personal matters according to regulations; there is no bottom line for discipline, long-term under the guise of “market-oriented” operation, in the name of “investment” and “financial management”, “money generates money”, and engages in the connection between power and capital, relying on Finance eats finance, uses power for personal gain, harms the public and private, abuses power to gain wealth, and is greedy .

④ Corruption of life and corruption of morality.

I don’t think there is any problem with the two parts ① and ④ , because these two paragraphs are the mistakes that most of the cadres who have been investigated for breaking the law will make, and they belong to conventional criticism.

However, these two parts are very problematic.

The second part is to accept activity arrangements in violation of regulations and receive gifts in violation of regulations. If it is an ordinary person, it is fine. A bank president has the biggest resource in his hand is money . The result of such violations can only be that a lot of funds go to non-compliant or unreasonable sources. Local, public power and private use have a great impact on the bank’s risk control.

Part ③ is the most serious . If the management of other banks also have such behaviors, the potential systemic risks will be great.

“In the name of “investment” and “financial management”, “money generates money”, and is trying to link power with capital, and rely on finance to eat finance.” I think this is not talking about Tian Huiyu personally, but educating the entire banking system .

Like China Merchants Bank, the reason why it can become the boss of a commercial bank is absolutely inseparable from a series of policies of Tian Huiyu, but at the same time as China Merchants Bank grows, the crime that Tian Huiyu committed is also the pain of China Merchants Bank .

Such wording, I think, is no longer aimed at Tian Huiyu and China Merchants Bank alone. This is shocking .

Tian Huiyu’s ending was also similar to what everyone expected before. He was expelled from the party, dismissed from public office, and confiscated his illegal income.

I didn’t expect the result of the processing today. Such news is absolutely bad for the banking sector , and the wording this time is not the same as before. The radiation range is very large. It is estimated that other banks are now trembling .

Banks are definitely on the hook next week, but that’s not necessarily a bad thing from a long-term perspective.

I think the sooner the problems in the bank are discovered, the better . Like Tian Huiyu, who has been the Party Secretary and President of China Merchants Bank from May 2013 to April 2022, if he has been committing illegal acts during this period, it will be bad for the banking industry. The impact is too great.

Among them, “doing a lot of power and capital connection, and relying on finance to eat finance” is the biggest injustice to other companies. If the big one can bully the small one, the entire ecological chain will be broken.

Although in the short term, the bank will still have pain, but in the long run, the bank will become healthier after experiencing such an event . Now I just hope that other banks will not have such a problem. Otherwise, the chain reaction will continue, and the banking sector will really not be able to withstand it.

A soy sauce, a bank, it is destined to be bloody after the market opens next week.

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