China – CBIRC Baoshang Bank Takeover

China – CBIRC Baoshang Bank Takeover

On 24 May, CHI CBIRC, CHI CB issued notice on bank takeover.

  • Decided to take over management of Baoshang Bank for one year, due to serious
    credit risk, in order to protect the rights and interests of the bank customers.


  • A takeover team was set up by relevant parties to take over the management.
  • Starting from takeover date, the team has exercised full operational management.
  • The merchant banking businesses have been entrusted to China Construction Bank.
  • China Construction Bank set up a team to carry out work as per an agreement.

Subsequent matters

  • Following the takeover, Baoshang Bank will continue to operate as per normal.
  • Customer matters will be handled normally, according to laws protecting rights.
  • It has obtained national credit, so consumer savings, corporate deposits guaranteed.
  • Public deposits, interbank liabilities up to 50mn guaranteed, larger sums negotiated.
  • CHI CB will pay attention to the liquidity situation of small and medium-sized banks.
  • Strengthen market monitoring, use monetary policy instruments to ensure liquidity.

Reporters Questions

  • CHI CBIRC and CHI CB answered questions on the takeover of Baoshang Bank.