Citic Group, one of Evergrande's main lenders, is among the institutions being scrutinized, the report said. The examination is being led by China's top anti-corruption agency and centers on 25 financial institutions, according to the report. Officials from the Central Commission for Discipline Inspection are reviewing files of lending, investment and regulatory records at these institutions, the report said. The firms suspected of having engaged in inappropriate dealings are likely to be formally investigated by the Communist Party and potentially charged later, the people cited told the Wall Street Journal. In recent months, Chinese regulators have taken aim at sectors ranging from technology to education and property, targeting some of the biggest firms in the country like Alibaba Group and Tencent Holdings.

Source: Wall Street Journal May 12, 2024 14:04 UTC