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China’s Xi Jinping inspects ties between financial companies and private firms: Report

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Firms that are suspected of indulging in unfair practices are likely to face formal investigation (File)

The Wall Street Journal reported on Monday, citing people with knowledge of the plan, that Chinese President Xi Jinping is investigating the relationship the country’s state-run banks and other financial institutions have developed with large private companies.

The inspections focus on whether state-owned banks, investment funds and financial regulators have become too friendly with private firms, especially those that have come under fire from Beijing in recent months , including debt-laden China Evergrande Group, ride-hailing giant Didi Global. Inc and high-profile fintech firm Ant Group, the report said.

The report said Citic Group, one of Evergrande’s main lenders, is being investigated. The company did not immediately respond to a Reuters request for comment.

According to the report, the test is being led by China’s top anti-corruption agency and centers of 25 financial institutions.

Officials of the Central Disciplinary Inspection Commission are reviewing the files of lending, investment and regulatory records in these institutions, the report said.

The commission could not be immediately reached for comment.

People quoted by the Wall Street Journal cited that firms that are suspected of engaging in unfair transactions could be formally investigated by the Communist Party and potentially charged later.

In recent months, Chinese regulators have targeted sectors ranging from technology to education and property, targeting some of the country’s biggest firms such as Alibaba Group and Tencent Holdings.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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