Chinese government has taken control of the struggling Baoshang Bank, which is linked to Xiao Jianhua, a billionaire abducted from a luxury hotel in Hong Kong by Chinese security services 2 years ago. The People’s Bank of China said the government would take over the operations of the bank for a year. Baoshang Bank is the second big financial institution to be taken over by the government in 2 years, after Beijing’s seizure of Anbang Insurance in February 2018. The central bank said Baoshang Bank had serious credit risk and that the government would manage it to protect the lawful interests of depositors and other clients. The central bank has formed a takeover team, which has asked state-owned China Construction Bank, the country’s second-largest bank, to take charge of Baoshang Bank’s operations.
