Equities

Reuters reveals China probes small bank shareholdings as risk worries persist

Reuters reveals China probes small bank shareholdings as risk worries persist

Reuters revealed how China is sharpening its scrutiny of small banks’ shareholders amid fears that loans from the lenders to big investors could prove a weak point in the country’s financial system. While nominally small, China’s numerous small city commercial banks risk having outsized significance because of their close ties to the rest of the banking system as well as with bigger shareholders, many of whom are giant companies.