China targets 38 bank shareholders in industry fraud crackdown

Investors accused of improper lending and fund diversion as loan books weaken

20200706 Baoshang Bank

A branch of the bailed-out Baoshang Bank in Beijing. © Reuters

NARAYANAN SOMASUNDARAM, Nikkei Asian Review chief banking and financial correspondent

HONG KONG -- Chinese regulators have singled out 38 bank shareholders alleged to have been involved in related-party lending and other misdeeds, a sign of the authorities' rising concerns as loan books sour.

The names listed by the China Banking and Insurance Regulatory Commission include shareholders of Baoshang Bank, which last year became the first lender to be taken over by regulators in 18 years, and banks affiliated with Anbang Insurance, the acquisitive conglomerate seized a year earlier.

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