45-year-old audit bureau veteran "parachutes in," Shanghai Bank officially announces new chief auditor approved to take office

Shanghai Bank’s latest executive personnel changes have been finalized.

Shanghai Bank’s latest announcement states that the company recently received the “Reply from the Shanghai Financial Regulatory Bureau regarding Liu Fang’s qualification for the position of Chief Auditor of Shanghai Bank Co., Ltd.” The reply indicates that the Shanghai Financial Regulatory Bureau has approved Liu Fang’s qualification for the role.

Unlike the backgrounds of several recent appointees, Liu Fang has long worked within the Audit Office system. He is also a member of the post-80s generation, young and energetic. His arrival may bring new momentum to Shanghai Bank’s audit work, which remains to be seen.

Strong Post-80s Talent

Public information shows that Liu Fang was born in January 1981, is 45 years old, and graduated from Wuhan University of Science and Technology with a major in Accounting. He holds a Bachelor’s degree in Management, a Master’s degree in Engineering, and is a Certified Public Accountant.

Liu Fang’s previous long-term work experience has all been within the Audit Office system. He has served as a clerk and deputy director at the Financial Audit Department of the Shanghai Office of the National Audit Office, deputy director and director of the Financial Audit Department of the Shanghai Office, and as a Level 1 Investigator. He also served as Deputy Director, Director, and Level 1 Investigator at the Financial Audit Department of the Shanghai Office of the National Audit Office, and as Deputy Director at the Audit Bureau of Pingwu County, Mianyang, Sichuan (secondment).

In October 2025, Shanghai Bank announced that its Board of Directors had decided to appoint Liu Fang as the company’s Chief Auditor, with a term coinciding with that of the sixth Board of Directors. In December 2025, the bank announced the new senior management team again, reiterating that the Board of Directors had decided to appoint Liu Fang as Shanghai Bank’s Chief Auditor. Liu Fang is awaiting approval from China’s banking regulatory authorities before officially taking up the position.

Increasing Importance of the Role

In recent years, the position of Chief Auditor has become a common practice in strengthening corporate governance and internal controls within Chinese banking institutions. The importance of this role continues to grow.

Relevant information indicates that the Chief Auditor of a bank is a core management position within the internal audit system of commercial banks. The role reports directly to the bank’s Board of Directors and its Audit Committee. Its functions aim to ensure the compliance of bank operations, risk management, and the effectiveness of internal controls.

Specific responsibilities include: establishing the internal audit system for the group in accordance with guidelines from banking regulatory authorities, covering all banking operations and institutions.

Developing medium- and long-term as well as annual audit plans, defining audit scope and objectives, and effectively allocating audit resources (such as personnel and budget) to address major bank risks.

Organizing audits of internal and external compliance, financial statements, risk management, and operational efficiency, covering compliance, business, and risk control aspects.

Reporting audit results directly to the Board of Directors and the Audit Committee, communicating issues found during audits to senior management, and monitoring the implementation of audit recommendations.

Assessing major business activities and internal control systems to enhance transparency and governance standards.

Additionally, according to regulations for commercial banks, banks should ensure sufficient internal audit resources, establish independent internal audit departments, and employ enough internal auditors—generally not less than 1% of total staff.

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