China Financial Irregularities Probe Targets Major State Institutions

China’s National Audit Office has identified significant China financial irregularities involving several leading state-backed financial institutions, reinforcing Beijing’s campaign to strengthen governance and reduce systemic financial risks.

The findings involve Bank of China, Agricultural Bank of China and China Everbright Group.

According to the audit, Bank of China used affiliated financial institutions and nominal employee investors to classify 11 private investment funds as public funds, avoiding approximately RMB2.37bn (USD327m) in taxes between April 2023 and August 2025.

Agricultural Bank of China was criticised for extending RMB11.07bn in loans to projects that failed to qualify as high-standard farmland developments, with some proceeds reportedly diverted into wealth-management products and debt repayment.

China Everbright Group was also cited for governance shortcomings and weak oversight of subsidiaries.

The China financial irregularities findings demonstrate Beijing’s increasing determination to strengthen financial discipline, improve governance standards and reinforce confidence in the country’s banking sector.