Chinese authorities made a rare move to liquidate a state lender, marking the closing chapter for the troubled Baoshang Bank.
Baoshang Bank will file for bankruptcy and liquidate its remaining assets, according to a statement from the People’s Bank of China last week. The bank’s original shareholders and unprotected creditor rights will be addressed accordingly.
Financial regulators took over the Inner Mongolia-based Baoshang in 2019, making it as the first state bank to be seized in 20 years.
In addition to Baoshang, regulators last year also took over Hengfeng Bank and Jinzhou, all three of which are controlled by disgraced tycoon and Tomorrow Group founder Xiao Jianhua, who is awaiting trial for bribery and market manipulation charges.
