By 
Liu Jin, vice-chairman and president of the Bank of China, has unexpectedly resigned from his positions, citing “personal reasons.” The announcement, effective August 25, comes just five months after his reappointment to the top executive role at China’s largest global bank. The bank, in a filing to the stock exchange, did not provide further details on Liu’s departure, and its Beijing spokespeople declined to comment.
Liu’s resignation has raised eyebrows, given that he is only 56, well below the official retirement age of 60 for China’s public servants and state-owned enterprise employees. His departure is seen as unexpected, especially given his significant role in the bank’s leadership.
A Career Banker’s Sudden Exit
Liu Jin, born in 1967, is a seasoned banker with a career spanning several decades. He joined the Bank of China as president in April 2021 and was appointed vice-chairman two months later, in June 2021. Prior to his tenure at the Bank of China, Liu held various senior positions at other major state-owned financial institutions, including China Everbright Bank, the Industrial and Commercial Bank of China (ICBC), and China Development Bank.
Bank of China, with roots tracing back to 1905 when it was established as the Da Qing Bank under imperial rule, has a long history in China’s financial sector. The bank was renamed following the 1911 revolution that ended Manchu imperial rule.
Leadership Transition Amidst Uncertainty
Following Liu Jin’s resignation, Ge Haijiao, the chairman and party secretary of the Bank of China, will assume the role of acting president until a permanent successor is appointed. Ge, who has been serving as chairman and non-executive director since April 2023, will temporarily lead the bank during this transition period. He also chairs the strategy and budget committee for the bank’s Hong Kong and mainland branches.
Liu’s resignation comes at a time of heightened scrutiny within China’s financial sector. Just days before stepping down, Liu was notably absent from the bank’s August 19 board meeting, which was chaired by Ge. During this meeting, the bank announced its decision to switch auditors for the year from PwC China to EY. PwC’s mainland China branch is currently facing a six-month ban and potentially a significant fine due to its involvement in the financial fraud of the now-liquidated developer China Evergrande Group.
According to the bank’s 2023 annual report, Liu had missed two out of the 13 board meetings held throughout the year, adding to the speculation surrounding his resignation.
Context of Recent Leadership Changes
Liu Jin’s departure follows the resignation of Liu Liange, the former party chief and chairman of the Bank of China, who stepped down in March 2023 amid corruption charges. Liu Liange later pleaded guilty in April to accepting over 121 million yuan (approximately US$17 million) in bribes and illegally issuing loans worth 3.3 billion yuan.
The Chinese government launched a new wave of anti-corruption inspections in April, targeting some of the country’s largest state-owned banks, including ICBC and the Bank of China, as well as key financial regulators such as the Ministry of Finance and the China Securities Regulatory Commission.
Market Impact
Following the news of Liu Jin’s resignation, Bank of China’s shares saw a slight dip, retracing 0.9% to 7 yuan in Shanghai. However, they managed a 0.3% rise to HK$3.58 during the noon trading pause in Hong Kong, reflecting a cautious market response to the unexpected leadership change.
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