4. Named and shamed
Way back on July 5, the China Banking and Insurance Regulatory Commission (CBIRC) published a list of 38 shareholders of banking and insurance institutions that had committed one of the following regulatory no-nos (Securities Times):
- Invested illegally in Chinese financial institutions
- Carried out related-party transactions
- “Treated the institutions as ‘cash machines’ and…embezzled funds.”
None of the shareholders are household names, but on Wednesday, Securities Times named the victims of the shareholders’ abuse, some of which have very familiar names:
- Baoshang Bank
- Ningbo Donghai Bank
- Bank of Dandong
- Chengdu Rural Commercial Bank
- Haikou Rural Commercial Bank
- Anbang Property & Casualty Insurance
- Hexie Health Insurance
- Kunlun Health Insurance
- China Financial Leasing
Some context: This might all seem a bit like inside baseball, but take note: weeding out deadbeat shareholders is THE key campaign that the CBIRC is currently embarked upon.
In recent days the CBIRC has also:
- Taken over nine financial institutions that shared Tomorrow Group as a shareholder.
- Fined Minsheng Bank RMB 100 million for appointing the representative of a deadbeat shareholder to its board without CBIRC approval (Caixin).
Get smart: The CBIRC wants to improve banks’ corporate governance. This flurry of activity is a clear signal that there will be serious repercussions for those that don’t fall in line.
Securities Times: 独家│银保监会"黑名单"上的38家股东，入股9家银行保险机构！有这些重大违法违规行为