Xi Jinping scrutinising ties between China’s state-owned banks and big private firms

Xi Jinping. Photo: Bloomberg

Chinese President Xi Jinping is scrutinising the ties that the country’s state banks and other financial institutions have developed with big private companies, the Wall Street Journal reported on Monday, citing people with knowledge of the plan.

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.

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

The examination is being led by China’s top anti-corruption agency and centers on 25 financial institutions, according to the report.

Officials from the Central Commission for Discipline Inspection are reviewing files of lending, investment and regulatory records at these institutions, the report said.

The commission could not be immediately reached for comment.

The firms suspected of having engaged in inappropriate dealings are likely to be formally investigated by the Communist Party and potentially charged later, the people cited told the Wall Street Journal.

In recent months, Chinese regulators have taken aim at sectors ranging from technology to education and property, targeting some of the biggest firms in the country like Alibaba Group and Tencent Holdings.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.