Financial regulators unexpectedly took over Baoshang Bank in May, with the China Construction Bank taking over daily operations. Photo: Orange Wang
Is China losing control over its economy after Baoshang Bank failure?
- 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
Financial regulators unexpectedly took over Baoshang Bank in May, with the China Construction Bank taking over daily operations. Photo: Orange Wang
