Xi Jinping’s plan to destroy banks and other financial institutions and conquer their powers and privileges continues unabated. The target? Control 100% of the Chinese banking sector.
Eliminate corruption and lack of transparency in the Chinese financial sector. This would appear to be China’s plan to destroy (its) banks and reshape them from within.
The Chinese Communist Party is increasing its checks on the finance sector, magnifying even more - if possible - the exercise of power of the state over the Chinese economy.
As The New York Times recalls today, if it is true that for years now Chinese President Xi Jinping has declared a "war" on the corruption that characterizes the banking sector in China, already identifying several scapegoats along the way, never like today his battle appears ruthless. A sweeping campaign of investigations, accusations, unparalleled imprisonments has begun, with an attempt to take absolute control of such a crucial sector for the Red Dragon’s economy.
China has declared war on banks
The plan is to raze the power of management currently in power in Chinese banks to the ground. The first step was to implement radical reforms of the financial regulatory system. The second one? The insertion of officials of the communist party at the tables of the state financial institutions. Then, in February, the "threats" from anti-corruption officials, promising that they would "investigate and deal with people who neglect party leadership", ordering bank and insurance executives to embrace in toto the values of the party, thus avoiding - according to the party itself - the typical western scenario in which excessive attention to vil money reigns.
Yes, China wants to destroy its banks, or rather, who runs them: the intentions have been clear (and serious) for years. In 2017, police abducted Xiao Jianhua, a Chinese-born billionaire and asset manager for the country’s elite, from his apartment at the Four Seasons in Hong Kong. Last August he was sentenced to 13 years in prison.
In 2020, the Communist Party managed to make Jack Ma, the boss of Alibaba, desist from continuing with the public offering of shares of his Ant Financial.
The Chinese plan to conquer the banking sector
The Chinese regulatory authorities themselves have published data testifying to greater control over the country’s financial sector: in 2022, China admits that it "punished" banking and insurance institutions 4,620 times - an increase of 19% compared to the previous year - and that it imposed 7,561 fines on owners and employees of financial companies, up 26% from 2021.
Dozens of Chinese executives within the financial sector have been investigated or sanctioned since early 2023, as revealed by the Communist Party’s Central Control Commission for Disciplinary Inspections, including Li Xiaopeng, former party secretary and president of China Everbright Group, a huge state-owned finance company (over 11,000 employees, $6.4 billion in revenue last year), under investigation for alleged violations of the law; Liu Liange, former party secretary and chairman of the Bank of China, under investigation by the country’s top anti-corruption authorities and Liu Ti, former deputy general manager of the Shanghai Stock Exchange.
Original article published on Money.it Italy 2023-04-27 17:50:00. Original title: Il piano della Cina per distruggere le banche
