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Photographer: Bloomberg / Bloomberg
Photographer: Bloomberg / Bloomberg
China’s banking regulator has given Baoshang Bank Co. the nod to initiate bankruptcy proceedings, starting a process of unraveling that had not been seen for at least two decades.
The China Banking and Insurance Regulatory Commission said it agrees in principle to Baoshang Bank filing for bankruptcy and asked the company to inform the regulator in case of any “significant situation,” the regulator said in a statement. statement dated November 12 and released on Monday.
From China The surprise acquisition of Baoshang Bank in May 2019 shook the markets when authorities imposed losses on some creditors, changing the assumptions of a government backing. The move highlighted the difficult balancing act Chinese regulators face as they try to clean up risky lending practices without causing a loss of faith in banks that could hurt the world’s second-largest economy.
People’s Bank of China It said last April that Huishang Bank and the newly established Mengshang Bank will take over the majority of Baoshang Bank’s remaining operations, assets and liabilities. Central bank said in August that Baoshang would file for bankruptcy.
As part of your relaxation, Baoshang It said earlier this month that it planned to cancel a $ 980 million subordinated equity bond after regulators deemed it a non-viable entity.
Baoshang was part of the investment conglomerate run by financier Xiao Jianhua, known as the Tomorrow Group. Chinese regulators in July said they will take over nine financial firms linked to Xiao, who was taken from a hotel in Hong Kong by Chinese authorities in 2017 and has not been seen in public since.
– With the assistance of Lucille Liu
