What’s new: China’s top banking and insurance regulator said it has forced out over 2,600 shareholders allegedly involved in fund embezzlement or other misconduct since 2019.
Some of the affected banks and insurance companies have undergone restructuring and introduced new strategic shareholders, the China Banking and Insurance Regulatory Commission (CBIRC) said in a statement (link in Chinese) released Wednesday.
The background: The ongoing campaign came in the wake of a crop of corruption and embezzlement scandals. Some shareholders were found to have used complicated ownership structures to facilitate connected-party transactions for their own benefit, the CBIRC said.
The CBIRC said it imposed 140 million yuan ($21.6 million) in fines on institutions and executives in the past two years. The regulator pledged it would further strengthen supervision on banks’ and insurers’ shareholders and connected transactions.
Related: Banking Regulator Says It Inspected Over 1,800 Rural Banks, Punished Shareholder Misconduct
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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