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Xi Scrutinizes State Banks’ Ties With Private Firms

Xi Scrutinizes State Banks’ Ties With Private Firms

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.

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