Chinese authorities are trying executives of the largest bank on fraud charges

Top Chinese bank executives are being tried by the authorities on charges of the country's biggest alleged bank fraud, according to the local media source magazine. Property developers and bank officials are accused of running a fraud scheme where a sum of 9.8 billion yuan ($1.44 billion) was borrowed from Bank of Communications.

Chinese prosecutors started their investigation into the case in 2007. To date Bank of Communications (BoCom), which is the fifth-largest bank by assets in China, has already set aside provisions and dealt appropriately with employees involved in the case, as reported by the sources which preferred to stay uncovered.

However, the case will unlikely have any effect on the bank's asset quality or earnings this year. The bank is 19% owned by HSBC. So far about half of the allegedly embezzled money has been recovered, while 4.6 billion yuan remains on BoCom's books as non-performing loans, Caijing reported.

Meanwhile, police is looking for Liu Changming, a former BoCom regional president who is also a suspect in the alleged fraud.