Minsheng Bank says branch chief suspected of illegal conduct

HONG KONG, April 19 (Reuters) - China Minsheng Banking Corp

said it has notified police that the head of one of

its branches is suspected of illegal conduct - a statement which

follows local media reports of missing money from wealth

management products.

Police are investigating Zhang Ying, president of the

Hangtianqiao branch in Beijing, Minsheng said in a stock

exchange filing late on Tuesday.

Business magazine Yicai, citing unidentified sources, said

on Tuesday that Zhang was being investigated in connection with

3 billion yuan ($435 million) missing from Minsheng's wealth

management products.

Aggressive expansion by mid-sized Chinese banks,

particularly into wealth management, and whether sufficient

compliance standards are being used has been an area of concern

for investors.

Minsheng said it has set up a working group to assist

police, adding that "the amount involved as reported by media"

was still being investigated. It did not give Zhang's


A spokesman for the lender declined to comment or provide

contact details for Zhang.

($1 = 6.8811 Chinese yuan)

(Reporting by Elzio Barreto in Hong Kong and Matthew Miller in

Beijing; Writing by Engen Tham in Shanghai; Editing by Edwina