China Official Says Crackdown on Murky Conglomerates Isn't Over
- CBRC chairman vows action on groups as part of banking reform
- Guo has launched campaign to root out malpractice in banks
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China’s banking regulator vowed to take action against those who built large financial conglomerates through complex ownership structures and fraudulent capital injections, signaling last year’s government crackdown on such entities is poised to continue.
Such operations have become major obstacles to the nation’s efforts to deepen financial reform and safeguard banking stability, Guo Shuqing, chairman of the China Banking Regulatory Commission, said in an interview published by the official People’s Daily on Wednesday. Some shareholders used banks as their “ATM machines” and “recklessly conducted unfair connected transactions to line their own pockets,” he was quoted as saying.