Chinese President Xi Jinping has zeroed in on China’s financial stalwarts and state banks with large private-sector actors, expanding his push to reduce capitalist forces within the economy.
Mr. Xi launched his campaign with a regulation assault on the private tech giants late last year. Now, he is launching a wide-ranging inspection of all financial institutions. According to people with knowledge of the plan, the inspections, announced in September with few details, focus on whether state-owned banks, investment funds and financial regulators have become too chummy with private firms, especially some that have recently landed in Beijing’s crosshairs, such as property giant China Evergrande Group , ride-hailing company Didi Global Inc. and financial-technology firm Ant Group.