Published: 8:48am, 2 Feb, 2016 Updated: 2:54pm, 20 Jul, 2018
Tightening regulation and an increasing number of criminal investigations into Chinese banks, and particularly their bill-financing businesses, could reduce liquidity in money markets and trigger a panic in stock markets, according to reports. This follows the emergence of a RMB 969m ($147m) fraud reported at China Citic Bank, and a similar fraud reported by Agricultural Bank of China last month, in which two employees illegally sold RMB 3.9bn ($590m).