By Bloomberg News
China kicked off new anti-graft inspections of some of its largest state lenders, the central bank and key regulators, the first broad probe since a round in 2021 that sent shock-waves through the industry.
The Ministry of Finance, the National Financial Regulatory Administration and the China Securities Regulatory Commission will be targets in the on-site checks by the nation’s anti-corruption authorities, broadcaster China Central Television reported late Tuesday.
China’s biggest state-owned lenders, led by Industrial & Commercial Bank of China Ltd., as well as the main bourses in Shanghai and Shenzhen will also be inspected, according to the report. Central government inspection teams have been stationed in 17 out of the total of 34 entities involved, CCTV said. The inspections, which also include non-financial entities, will last for three months.
Similar anti-graft checks on 25 major financial organizations in 2021 heralded sweeping arrests and penalties across the industry. At least 130 financial officials and executives were investigated or punished in 2023 alone, according to Bloomberg calculations based on official announcements.
The central bank and the securities regulator announced the start of inspections in separate statements. Wu Qing, chairman of the CSRC, pledged to rectify issues and strive to achieve high-quality development in capital markets, according to a Tuesday release. Pan Gongsheng, governor of the People’s Bank of China, also vowed prompt rectification of issues found in the coming inspection.
The Communist Party has put an increasing focus on corruption among cadres and corporate executives, at a time when President Xi Jinping is trying to stabilize the world’s second largest economy while preventing systemic financial risks.
Xi’s years-long anti-graft campaign has taken down more than 1.5 million government officials, with the execution of Lai Xiaomin, former chairman of one of the nation’s bad debt managers, as well as life imprisonment of Hu Huaibang, the former chairman of China’s biggest policy bank.
First Published: Apr 17 2024 | 11:07 PM IST
