Xi’s Corruption Drive and the Banks
President Xi Jinping in his continuing corruption campaign has turned his sites from the oil sector to the banks. The president of one of China’s larger banks, Minsheng, has resigned, due to a corruption scandal, and a relatively new board member of the Bank of Beijing is under investigation. Is this part of a broader attack on the financial sector? What does it mean for the banks at a time when they are facing the potential for massive write-downs to due to a declining property market and 18 trillion yuan in local debt?