Involution-style competition · Full chronicle and history

An audit report revealed that Bank of China used methods such as gathering people through employees to package private equity funds as public funds, evading approximately 2.367 billion yuan in taxes over a period of more than two years.

An audit disclosure shows that financial institutions formed approximately 1.41 trillion yuan in inflated loan scales through methods such as idle fund circulation, false profit concessions, and relaxed risk controls.

An audit report states that tax and customs authorities overcharged or pre-collected corporate income tax and value-added tax from 1,954 enterprises, totaling 40.427 billion RMB.

An audit report revealed that 21 provinces and cities artificially inflated fiscal revenue by 59.651 billion yuan through methods such as pre-spending and subsequently recalling treasury funds.

Audits explicitly named ICBC, CCB, Bank of Communications, CITIC, and other banks for tech-finance that fails to live up to its name, stating that 126 provincial branches retroactively labeled 64.22 billion yuan in loans as tech loans after the fact.

An audit report revealed that relevant financial institutions illegally covered up or disposed of 63.943 billion yuan in non-performing assets, and illegally conducted credit business totaling 67.6 billion yuan.

An audit pointed out that the Agricultural Bank of China issued 11.066 billion RMB in loans to projects not belonging to high-standard farmland, and some funds were diverted to purchase wealth management products and bonds.

In the first 5 months of 2026, 475 banks received a total of 2,744 fines, amounting to 870 million yuan, a year-on-year increase of 27%; among them, fines for data reporting and governance violations increased significantly.

Since May 2025, audits have uncovered over 260 major disciplinary and legal violations, involving more than 1,100 people and approximately 91 billion RMB in funds.

In 2025, the net interest margin of China's commercial banks dropped to 1.4%, with the Bank of China at 1.26%, and net interest income experienced negative growth for two consecutive years.

Bank of China used its subordinate financial institutions and employee contributions to create public-like holder structures for 11 private equity funds in order to exploit tax incentives meant for public funds.