Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Hikvision Foresees Overseas Customer Losses Amid U.S. Blacklisting
As Investors Circle Milk Tea-Makers, Experts Warn of Coming Bubble
China Online Retail Sales Growth Slows but Stays in Double-Digits
LATEST
Chinese Fintech Firm 51 Credit Card Raided by Police
China Net Execs Tout ‘Industrial Web’ at World Internet Conference
China Online Retail Sales Growth Slows but Stays in Double-Digits
As Investors Circle Milk Tea-Makers, Experts Warn of Coming Bubble
Hikvision Foresees Overseas Customer Losses Amid U.S. Blacklisting
Tencent-Backed E-Book Platform Partners With Disney for ‘Star Wars’ Project
iQiyi Looks to AI to Force-Feed Ads to Viewers
Popular Walking App Accused of Financial Fraud
WeWork Putting the Brakes on China Push: Report
‘No New Progress’ on Zotye Joint-Venture With Ford
Qutoutiao’s Online Literature Unit Gets $100 Million Windfall
NBA’s China Crisis Has Already Caused ‘Substantial’ Losses, Commissioner Says
Northern China Aims to Curb Toxic Air Pollution by 4% This Winter
China’s Economic Growth Dips to New Nearly Three-Decade Low
Tesla’s China Plant Is Hooked Up to State Grid Power Supply
Didi Pushes Further Into Latin America With Eye on Costa Rica
Homeowners Demand Refunds After Developer Cuts Prices
Controversial WeChat Public Account Operator Eyes High-Tech Board IPO
Burgeoning Online Marketplace in Crisis After Luring New Shoppers With Merchants’ Money
Huawei Posts Strong Revenue Growth Despite U.S. Export Ban
Central Bank Says Baoshang Takeover is One-Off Event

By Zhang Yuzhe, Wu Hongyuran and Liu Jiefei / Jun 03, 2019 03:01 PM / Finance

Photo: VCG

Photo: VCG

The recent government takeover of a private Chinese bank was a one-off case and won’t be followed by further takeovers in the near future, China’s central bank has said, in a bid to ease market panic.

Regulators assumed control of Baoshang Bank on May 24, in the country’s first direct takeover of a commercial lender in 20 years, prompting fears about broader risks for other Chinese lenders.

But Baoshang is a special case, as Tomorrow Holding, Baoshang’s largest shareholder, embezzled a large amount of the bank’s funds and failed to repay the money in a timely manner, triggering severe credit risk for the bank, the People’s Bank of China (PBOC) said on Sunday.

All of Baoshang’s retail depositors and all individuals who have bought its wealth-management products have had their investments guaranteed by the authorities, as have corporate and interbank creditors with total claims of up to 50 million yuan ($7.2 million), according to the PBOC.

Tomorrow Holding founder and controlling shareholder Xiao Jianhua has reportedly been under investigation by anti-graft authorities since January 2017.

Related: Five Things to Know About the Baoshang Bank Takeover

Contact reporter Liu Jiefei (jiefeiliu@caixin.com)


Share this article
Open WeChat and scan the QR code