China’s banking regulator has publicly named shareholders in Chinese financial concerns that it alleges have engaged in a range of infractions including the misuse of funds.
The China Banking and Insurance Regulatory Commission (CBIRC) released a list of 38 shareholders in financial companies that it alleges to have either
- Undertaken affiliate transactions or sought inappropriate benefits in breach of regulations;
- Formulated or provided false materials;
- Held a percentage of equity in excess of set ratios in conjunction with affiliate shareholders without licensing;
- Acquire shares using fund sources that do not satisfy regulations;
- A single shareholder holding equity in excess of statutory ratios;
- TheActual controllers being involved with criminal conduct.
10 of these shareholders were involved with Baoshang Bank – the Inner Mongolian lender that was the recipient of a government bailout in May 2019.
A further 10 shareholders on the list were associated with Chengdu Rural Commercial Bank, which was under the control of former Anbang Insurance chairman Wu Xiaohui, while four companies on the list were directly involved with Anban Insurance itself.
In 2018 Wu received an 18 year prison sentence for fraud and embezzlement, in one of the biggest criminal cases in the Chinese finance sector last decade.
Another three shareholders were involved with Ningbo Donghai Bank (宁波东海银行), while two were shareholders were involved with Haikou Rural Commercial Bank (海口农商银行).
One company was involved with seven rural commercial banks in Hainan province, while seven companies listed were involved with Kunlin Health Insurance (昆仑健康保险).