Chinese President Xi Jinping is nullifying the ties that the big players in the private sector have forged with China’s state banks and other financial leaders, increasing his pressure to suppress capitalist power in the economy.
M. Shi, who began his campaign late last year with a regulatory attack on private technology giants, is launching a wide-ranging round of inspections of financial institutions. According to people with knowledge of the plan, pay attention to the details of the inspections announced in September, whether state-owned banks, investment funds and financial regulators have become too uncomfortable with private companies, especially some who have recently landed in Beijing crosshairs. Such as property giant China Evergrand Group, ride-healing company Didi Global Inc. and financial-technology firm Ant Group.
The test, conducted at the center of China’s top anti-corruption agency and 25 financial institutions at the heart of China’s economy, is the most extensive of Mr Xi’s suspicious sectors since he came to power nearly a decade ago. This is part of a broader effort to shift China’s economic system away from Western-style capitalism, leading to a change of leadership by the end of next year, when Mr Xi hopes to bypass the convention and continue his rule beyond normal. Terms of the year
Earlier this month, corrupt officials from the Central Discipline Inspection Commission came out through the offices of 25 state institutions, reviewing their nding, investment and regulatory record files and demanding answers to some agreements or decisions related to private companies. The plan was made according to people familiar with it.
An extended version of this report can be found at WSJ.com