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China's Industrial Bank cooperates with authorities on probe into illegal fund-raising

Tuesday, June 9, 2015 - 09:40

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China's Industrial Bank Co Ltd is cooperating with authorities on a probe into speculation that a former bank employee absconded with 3 billion yuan (S$654 million) illegally raised from bank clients, the official Xinhua news agency said.

[SHANGHAI] China's Industrial Bank Co Ltd is cooperating with authorities on a probe into speculation that a former bank employee absconded with 3 billion yuan (S$654 million) illegally raised from bank clients, the official Xinhua news agency said.

Su Yu, a former corporate finance account manager at a branch in Beihai in southwest China, is under investigation for illegally raising funds from bank customers, Industrial Bank said in a statement posted on the Shanghai Stock Exchange on Tuesday.

Su deceived more than 2,000 of the bank's customers into thinking that their money would generate high interest rate returns from a lending scheme, according to Xinhua. "Although no lending contracts were signed between Mr. Su and customers who he raised funds from... We deeply sympathise with the victims," said a spokesperson from the bank, according to Xinhua.

Industrial Bank's capital is not affected, the bank said in its statement.

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Su Yu joined the bank in July 2010 and voluntarily resigned on March 27 this year, according to the bank's statement.

REUTERS

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