Financial regulators unexpectedly took over Baoshang Bank in May, with the China Construction Bank taking over daily operations. Photo: Orange Wang

China’s control over its entire economy weakened as Baoshang Bank failure starts domino effect

  • Takeover of Baotou-based lender in May was the first bank failure in over 20 years in a system that had come to believe that all financial institutions were guaranteed
  • Government-directed investment in the Bank of Jinzhou last week further underscored the problems as big banks reduce loans to smaller institutions
Topic |   China economy

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Financial regulators unexpectedly took over Baoshang Bank in May, with the China Construction Bank taking over daily operations. Photo: Orange Wang
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