China looks at the economic sector in the new anti-corruption drive | Business and Economy
The ruling China Community Party has turned to a major part of the country’s economy this month, launching a new age-old campaign to expose corruption and illegal activities.
The country’s anti-corruption watchdog has begun a two-month visit to more than 20 corporations, including central bank, banking and insurance regulators, stock exchanges, commercial banks and asset management companies, for the first review of the sector since the Treasury. Corruption in the country has begun to target more than 20 organizations 2015.
Chinese President Xi Jinping is reviewing the relationship between state-owned banks and other financial institutions with large business corporations, the Wall Street Journal said Monday, citing people familiar with the system.
The review is a “political investigation” of party committees in financial and regulatory bodies, according to a report released by the Central Commission for Discipline Inspection (CCDI) on Tuesday.
CCDI officials will look into whether they are violating political law – a rhetorical party claim.
The visit follows a call by China’s anti-corruption chief, Zhao Leji, in late September to conduct an in-depth investigation into the activities of the Party of 25 economic and regulatory governments.
Since the end of 2020, Beijing has been advocating for a “avoidance of unrestrained development,” initiating a ban on professional giants and private education companies.
The campaign has been particularly focused on curbing “bad growth” for some platform companies in order to address their oppressive and unfair practices.
“A recent review … emphasizes Xi’s call to curb economic growth,” said Feng Chucheng, a colleague of Plenum, an independent research firm.
“The party leaders must have realized that they need a more flexible, low-cost approach to managing the financial risks that have occurred since last year, including Ant IPO, Didi IPO, and the most recent stock market,” Feng said.
When the sector was last reviewed in 2015, at least hundreds of banks and regulators were criticized and even fired. Mistakes included organizing banned internal parties and accepting holidays from customers.
In 2017, Xiang Junbo, a former Chinese insurer, was fired after being investigated by one of the country’s top financial advisers over the years. Xiang was sentenced to 11 years in prison in 2020.
In January this year, China executed Lai Xiaomin, a former chief executive of China Huarong Asset Management Co., after he was found guilty of bribery of $ 1.79 billion ($ 280m).
On Monday, the CCDI said a former chairman and party leader at Chang’an Bank, northwest of Shaanxi, had been removed from the party and removed from government office due to corruption.
In recent months, Chinese authorities have also looked at areas ranging from technology to education and property, targeting other major companies in the country, such as Alibaba Group and Tencent Holdings.
