Political inspectors from the Chinese Communist Party (CCP) have kicked off the eighth round of inspections since Xi Jinping took office as the CCP General Secretary of the 18th National Congress. A month ago, the CCP Central Commission for Discipline Inspection (CCDI) announced political inspections of 25 financial institutions.
Recently, the Second Inspection Team arrived at the Bank of Communications Co., Ltd. and the Shanghai Stock Exchange. The Fourth Inspection Team came to the China Banking and Insurance Regulatory Commission (CBIRC); and the Fifth Inspection Team was at the China Everbright Group Co., Ltd. Each inspection will take about two months.
The Bank of Communications Co., Ltd. is among the top 5 leading commercial banks in China. It is listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange. In addition to over 2,800 branches in China, it has 23 overseas subsidiaries, branches, and representative offices in Hong Kong, New York, San Francisco, Tokyo, Singapore, Sydney, Frankfurt, London, Paris, and Johannesburg, as well as other cities.
The Shanghai Stock Exchange is the world’s 3rd largest stock market by market capitalization at US$7.62 trillion as of July 2021. It is also Asia’s largest stock exchange. According to its website, “Under the strong leadership of the CPC [the Communist Party of China] the Central Committee and the State Council and under the direct guidance of the CSRC [the China Securities Regulatory Commission], along with fervent support from all sectors of society, the Exchange makes it its mission to serve the nation’s reform and development initiatives.” CBIRC is a state agency under China’s State Council. It is the main regulator of the banking and insurance institutions.
China Everbright Group Corporation is a state-owned financial conglomerate listed on the Hong Kong Stock Exchange, with alternative asset management as its core business. During the kick-off at these institutions, the Inspection Teams emphasized that the inspection is “an important measure to uphold and strengthen the Party’s overall leadership over financial work, promote the Party building, especially political development; and an important measure to safeguard national economic security and promote the financial industry.” It is also “an important measure to strengthen the comprehensive and strict governance of the Party in the financial sector and promote the deepening of the anti-corruption struggle.”
The Inspection Teams urged the Party committees at these financial institutions to “improve their political positions and re-enforce their political responsibilities.”
The Inspection Teams have set up inspection hotlines and mailboxes for complaints and will receive letters and visits until December 15, 2021.
Source: Beijing News, October 13, 2021