Industrial and Commercial Bank of China (ICBC), China’s biggest bank, has stepped in to become the largest shareholder of the troubled Bank of Jinzhou, the latest sign that the state is increasing its financial support for struggling banks across the country, said the Financial Times.
Concern has been growing about the bank since the Hong Kong-listed lender suspended trading in its shares earlier this year and saw its E&Y auditor quit, said the South China Morning Post.
ICBC said on that one of its subsidiaries would invest up to RMB 3 billion ($436 million) in the Bank of Jinzhou, taking a 10.82% stake.
Investors have grown concerned over the health of the Chinese banking system in recent weeks following the government takeover of Baoshang Bank, the first such incident in nearly two decades.
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