China regulator gives approval for Baoshang Bank to file for bankruptcy

[BEIJING] China Banking and Insurance Regulatory Commission (CBIRC) said on Monday it had given its approval for Baoshang Bank to start bankruptcy proceedings, after the regulators took control of the lender in May 2019 citing serious credit risks.

The takeover was scheduled to end on Monday.

The central bank said in August it would allow Baoshang to file for bankruptcy and would liquidate any remaining assets.

The regulators have also approved Mengshang Bank, a newly revamped bank based in Inner Mongolia, and Hong Kong-listed Huishang Bank to take over Baoshang's assets and operations.

REUTERS