Bank of East Asia has downplayed the reported detention of one of its executives in mainland China over bribery allegations, putting the spotlight on the Hong Kong-based lender already reeling from a surge in impairment losses linked to the struggling property sector.Chen Zhiren, executive-vice president and head of northern China for BEA China, was detained by Beijing police in July in connection with bribery allegations, financial news website Cailianshe reported on Tuesday.
Chen is suspected of skirting credit rules and issuing loans in exchange for bribes. The investigation may be extended to another unit of the bank, East Asia Qianhai Securities, the report said, citing anonymous sources.
The reported detention comes as Beijing intensifies its anti-corruption campaign targeting banks and other financial companies to curb graft linked to high-risk loans.