Associates of former Chinese President Jiang Zemin have been linked to a Shanghai banking scandal, according to Hong Kong's Standard newspaper.
The chairman of the China Construction Bank, Zhang Enzhao, was forced to resign earlier this month as part of a growing scandal over corruption and financial graft.
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China's President Hu Jintao smiles during his election as chairman of the state Central Military Commission, replacing Jiang Zemin, at the National People's Congress in Beijing, on March 13.
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The bank scandal comes amid word in Beijing that President Hu Jintao and Premier Wen Jiabao are in a power struggle to remove political figures in power centers that are connected to Jiang, who formally stepped down as head of the Central Military Commission this month, his last official position.
"It is unlikely to be a coincidence that Zhang was picked up for investigation for suspected criminals deeds done in Shanghai years ago," a Guangdong government official told the newspaper.
Jiang's power base has been in Shanghai, and the crackdown appears aimed at weakening Jiang's indirect power.
According to press reports, Jiang was not present at the NPC meeting March 13 when Hu was elected his successor as chairman of the CMC.
Some reports attributed his absence to illness.
Zhang is suspected of involvement in millions of dollars in improper loans and for taking more than $1 million in payoffs.
Jiang's retirement means that any Shanghai officials found to be involved in corruption are more likely to be prosecuted.
One report also quoted Jiang as telling Hu, "It is better to take military action against Taiwan sooner rather than later."
