Baoshang Bank Takeover Extended by Six Months
What’s new: China’s central bank said (link in Chinese) Saturday that the timeline for execution of a takeover of troubled Baoshang Bank Co. Ltd. has been extended by six months.
The original timeline for completion of the takeover was set for May 24, but has been extended to Nov. 23 due to disruptions caused by the coronavirus outbreak, according to the People’s Bank of China (PBOC).
What’s the background: A year ago, the PBOC and the China Banking and Insurance Regulatory Commission, China’s top banking regulator, announced the plan to take over Baoshang in one year.
The rare takeover was part of efforts to break up the business empire of fallen tycoon Xiao Jianhua and contain the “severe credit risk” posed by the bank to its depositors and other clients.
In the Saturday statement, the PBOC said that Mengshang Bank and Huishang Bank, which are taking over part of Baoshang’s assets, liabilities and businesses, are moving ahead with their plans in an orderly manner.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.
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