What’s new: A senior executive who headed the financial arm of China’s state-owned shipbuilding giant China State Shipbuilding Corporation (CSSC) has become the latest target of graft busters.
Li Chaokun, former chairman of Zhong Chuan Finance Co. Ltd., has been investigated “on suspicion of serious violations of discipline and law,” a common euphemism for corruption, the Communist Party’s Central Commission for Discipline Inspection said Tuesday.
Li, 57, is a veteran executive of CSSC who has served various senior management posts in the company and its subsidiaries. He was Zhong Chuan Finance’s chairman between 2019 and 2020.
Li was last seen in public in late April when he attended a meeting at CSSC Hong Kong Shipping Co. Ltd., where he serves as party chief.
Li’s downfall is likely to be related to recent crackdown on the ship financial leasing sector, a person close to the industry said.
Background: Established in 1997, Zhong Chuan Finance is a non-banking financial institution wholly owned by CSSC. The company mainly provides financial services such as settlement, deposits, loans and foreign exchange for CSSC and affiliated firms.
In the first two months, Zhong Chuan Finance’s revenue totaled 802 million yuan ($111 million), rising 5.1% from a year ago. Its total assets amount to 226.5 billion yuan, expanding 18.6% year-on-year, according to CSSC’s website.
China’s sweeping anti-corruption crackdown has rattled the shipbuilding industry in recent years. Since 2023, several senior officials at CSSC’s Hubei operations have been investigated over graft allegations.
Contact reporter Han Wei (weihan@caixin.com)
