June 25, 2004

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China is still rapidly trying to dress up some of its largest banks for a partial floatation on the stock market in the next year or two. They're solid institutions, just a little leaky.

Fraud at Industrial and Commercial Bank of China (ICBC), the country's largest lender, is rampant with staff and customers conspiring to obtain as much as 17 billion yuan (HK$16.03 billion) in illegal loans, an audit has found...The audit, supposedly to initiate reforms in preparation for an eventual international listing, follows a report at the beginning of this year into thousands of state-owned enterprises with financial irregularities linked to the bank. That report identified fraud totalling about 67 billion yuan.

The latest audit may have exposed only the tip of the iceberg. It investigated just 21 branches. The Industrial and Commercial Bank has 28,300 branches and 100 million customers.

Just remember when the hype starts about China's banks and what a good prospect they are you read it here first.

posted by Simon on 06.25.04 at 09:44 AM in the




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Comments:

Eeek! Makes the Fraud in American Corporate Offices look like stealing pennies from the give-take tray!

posted by: mdmhvonpa on 06.25.04 at 10:05 AM [permalink]




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