(WSJ) Chinese President Xi Jinping is scrutinizing the relationships that China state banks and financial institutions have established with large private sector firms in the latest crackdown.
China will target financial institutions, investment funds, and regulators in September in what looks like an attempt to stem out capitalism.
The scrutiny will reportedly start this month and is being steered by the Central Commission for Discipline Inspection.
Individuals who will be found guilty will face another inspection by the Communist Party, while institutions that will not have complied will be disciplined.
Executive compensation at the target institutions is also at stake based on the outcome of the probe.
The crackdown on the 25 largest financial institutions comes when China is approaching a political transition, in which XI is expected to extend its rule.
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