[Epoch Times October 12, 2021](Epoch Times reporters Yi Ru and Li Yun interviewed and reported) Following the heavy purge of private enterprises, Xi Jinping’s targets have turned to state-owned banks and other financial institutions. Some US media said that the Central Commission for Discipline Inspection personnel has stationed in 25 financial institutions, and those who improperly interact with private enterprises may be investigated and prosecuted. Experts believe that Xi’s move is to sever the relationship between the powerful and the financial market.
On October 12, the Wall Street Journal reported that Xi Jinping has aimed at the relationship between the Chinese Communist Party’s state-owned banks and other financial institutions and large private companies, and is currently conducting a comprehensive review of financial institutions.
According to people familiar with the matter, the inspection work announced in September focused on whether state-owned banks, investment funds, and financial regulatory agencies have too close relations with a number of private companies, such as the real estate giant Evergrande Group, Didi Chuxing, and Alibaba’s financial services. Technology-related companies Ant Group, etc.
According to the report, Xi Jinping has always been skeptical about the financial sector. This time, the Central Commission for Discipline Inspection of the Communist Party of China took the lead and locked up 25 financial institutions at the core of China’s economy. This is the most extensive review of a single field since Xi took power.
People familiar with the matter said that the Central Commission for Discipline Inspection personnel had stationed in 25 financial institutions in October to inspect lending, investment files and declaration records. People suspected of improper dealings with private enterprises may be investigated or prosecuted.
Xi wants to sever the relationship between the powerful and the financial market
Current political commentator Li Lin analyzed the Epoch Times that this wave of inspections by the Central Commission for Discipline Inspection was mainly aimed at some unruly financial predators. For example, recently Cha Didi, Cha Ali, Cha Hengda Group, then Evergrande’s main financing bank is CITIC Group.
According to Sina Finance, CITIC Group provided funds for Evergrande in violation of regulations. After several rounds of capital increase in Evergrande, CITIC Juheng still holds 1.6% of its shares.
In addition to CITIC Group, insurance companies represented by China Life and Ping An has also invested in Internet companies such as Ant Financial and Didi Chuxing in recent years.
Li Linyi said that there is a key person here, Liu Lefei, the son of Liu Yunshan, a former member of the Jiang School of the Communist Party of China. He is the head of the Investment Management Department of the Investment Department of China Life Insurance and the head of CITIC Industrial Fund.
“In fact, behind these companies under investigation, there are all powerful and expensive businesses.” Li Linyi said, “Some are from the Jiang faction, some are from other factions, and there are people behind them anyway. For Xi Jinping, he went to investigate these financial affairs. The department is actually to cut the relationship between the powerful and the financial market.”
Li Linyi believes that Xi Jinping has actually been doing it. Since the arrest of Zeng Qinghong’s White Glove Tomorrow Group founder Xiao Jianhua in 2017, he has been reducing the power of financial dignitaries. After the inventory is completed, the powerful and powerful behind these private companies may converge, and they dare not arbitrarily collect money as before.
The two sides of the Chinese Communist Party’s power struggle are in a tug of war in the financial field?
Xie Tian, a professor at the Aiken School of Business at the University of South Carolina in the United States, also analyzed the Epoch Times, “This systematic investigation of financial institutions is a gesture of rectification within the Communist Party of China. It is related to sweeping away the opposition forces in the party.”
“If you look at this incident with the CCP’s purge of private companies such as Ali and Dishang in the past year, this is a tug-of-war and battle between the two parties in the CCP’s struggle for power in the financial field.”
Xie Tian said, “Now that Xi Jinping uses the Central Commission for Discipline Inspection to deter financial institutions, I am afraid that some people will fall. Prison, this is the foreseeable result.”
China’s financial issues are more urgent than Xi’s power struggle against political opponents
Taiwan’s general economist Wu Jialong analyzed the Epoch Times that China’s financial problems are quite serious. For Xi Jinping, the problems faced are even more urgent than the power struggle against political opponents.
Wu Jialong said that the Central Commission for Discipline Inspection has several directions for investigating financial institutions. The first is to check the political and commercial relations behind it; the second is to check bad debts; the third is to check the outflow of funds; and the fourth is to understand the flow of funds to real estate. .
“The flow of bank funds to real estate is likely to become bad debts, which will threaten the stability of the bank. Now the issue of foreign exchange reserves is probably a focus of the central government’s audit.” Wu Jialong said.
According to data from the Foreign Exchange Administration of the Communist Party of China, as of the end of September, China’s foreign exchange reserves stood at 3.2 trillion, or 3.2 trillion U.S. dollars.
Wu Jialong said that after the foreign exchange reserves of 3.2 trillion dollars are deducted from the foreign debt of 2.68 trillion dollars, there are more than 530 billion dollars left. Coupled with the withdrawal of foreign capital, foreign exchange reserves are completely insufficient. This situation is very serious.
Recently, more and more foreign companies have withdrawn. On October 9th, the US retail giant Wal-Mart announced the withdrawal of its global supply business from China; in September South Korea’s Samsung Heavy Industries closed the Ningbo Shipyard and withdrew from China; before this, nearly 1,700 Japanese companies had withdrawn from China; nearly 80% of US companies The production line was withdrawn from China, and 85% of North Asian enterprises left.
Wu Jialong said, “The withdrawal of these companies will have the pressure of foreign exchange settlement. The money they need to take away is to be given. The problem is that the foreign exchange reserves may not be enough, so these financial institutions may be busy turning over recently.”
“Now the financial turmoil is about to stir,” Wu Jialong believes, “Xi Jinping is worried that political opponents will be hit in the financial sector, so he will rectify financial institutions. This is not just a matter of power struggle.”
Xi Jinping’s right to reclaim the lifeblood of the economy
Current political commentator Li Linyi believes that “Xi Jinping’s attack on the financial sector is actually to reclaim all the rights of these important economic lifelines. Because China’s economy is inseparable from the power and authority. For example, the Li Peng family monopolizes electricity, the Jiang Zemin family monopolizes telecommunications, and the Zeng Qing red clan The family monopolizes oil and so on.”
However, he believes that “Xi Jinping is unlikely to catch the powerful at present. Because now Xi wants to get rid of the big tigers in the political and legal system. Therefore, this wave of cleaning and falling is basically the front office executives, the white gloves of the powerful. And then again. With a new wave of people going up, the power of these powerful and powerful financial institutions will be reduced a lot.”
Li Linyi also mentioned, “Xi Jinping has no suspense in his 20th Dalian tenure. What he is doing now is attacking political opponents and powerful people, making the whole situation more stable, and removing the destabilizing factor bombs one by one. This wave of cleansing , It may end before the end of next year.”
Editor in charge: Gao Jing#
.