Baoshang Bank, a commercial bank with ~10k employees and over $61B total asset is facing severe credit risk and now being taken over by PBOC. This might the first bank run and bank bailout by PBOC after 1979 (Chinese economic reform)
I *believe* that there have been other bank “failures” in China, but instead of being publicly announced as a failure after a bank run, the shitty banks of the past were simply pulled into one of the state owned banks instead of this being so public.
Not a huge bank by any means, but I find it interesting that they’re being public with this instead of sweeping it under the rug. I wonder if this will be interpreted as a sign of weakness… Chanos apparently views this as a big deal.
UPDATE 2-Chinese regulator to take over Baoshang Bank due to credit risks – Reuters | First Chinese bank failure in 20 years. This is a big deal, All. t.co/EDiaYrF0BM
— Diogenes (@WallStCynic) May 24, 2019