Shanghai Daily with the report:
- Branch chief of the lender in Beijing, Zhang Ying, has been detained by Beijing police
- Zhang allegedly helped a corporate client disguise commercial acceptance bills as bank acceptance bills by using a false seal of the bank
- The bills were issued by the client to a number of companies, which later discovered the bills were fake
- In order to cover up the fact that the fake bills were not able to be cashed by the bank, Zhang later sold 3 billion yuan of unauthorized wealth-management products to the bank's private customers to get funds for the client to repay the bills
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Bank acceptance bills, a form of bank-backed IOU, are commonly used as a form of payment between Chinese companies. The holder of such bills is entitled to cash the bill at a bank under any circumstances. It is different from commercial acceptance bills, which are issued by companies and do not guarantee repayment despite companies' trustworthiness.
