China exposes 38 errant shareholders of financial institutions

Such disclosures would be a regular fixture, the regulator said.

The China Banking and Insurance Regulatory Commission (CBIRC) has named 38 corporate investors for violating rules and laws as shareholders of banks and insurers, reports Reuters.

The regulator said that the disclosure aims to mitigate financial risks and improve corporate governance, adding that such disclosures would be a regular occurrence in the future. Despite the cleanup efforts of the past few years, some shareholders still engage in illegitimate ways, so publishing the names of offenders serves to inhibit them.

China has amplified scrutiny of shareholders in financial institutions after the failure of conglomerate Anbang Insurance Group, which the government seized in early 2018. Its chairman and key shareholder Wu Xiaohui was prosecuted for economic crimes.

Regulators also tightened the screws on shareholders in small lenders last year with the takeover of Baoshang Bank due to concerns that big shareholders could exploit their positions to secure easy loans.

Here’s more from Reuters.

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