China is reportedly scrutinising the country’s top financial regulators, state-owned lenders, insurance firms and asset managers to root out corruption.
China’s corruption watchdog Central Commission for Discipline Inspection (CCDI) will inspect 25 financial institutions.
China Banking and Insurance Regulatory Commission (CBIRC) will also be scrutinised by the CCDI-led team.
The inspection, which is expected to go on for nearly two months, mirrors the government’s focus on financial regulations and cooperation with the CCDI’s team will be the top priority, Bloomberg reported citing CBIRC Chairman Guo Shuqing.
Other financial entities to be scrutinised include the People’s Bank of China, the China Securities Regulatory Commission, the Shanghai and Shenzhen stock exchanges, state-owned banks, as well as asset management companies.
“Finance is the core of the modern economy and is tied to development and security,” CCDI inspection in-charge Yang Guozhong was quoted by Reuters as saying.
“Inspections are political supervision, and a powerful and comprehensive means of governing the Party in a strict way,” Yang said.
There must also be no systemic financial risks – that’s the bottom-line that we must resolutely defend,” he added.
Notably, the Chinese President Xi Jinping is zeroing in on state banks and other financial entities that have developed ties with big private sector firms, the Wall Street Journal reported citing people familiar with the matter.
The crackdown on industries ranging from finance to real estate is an effort to mitigate financial risk.