China's Bank of China Named in Tax Evasion Probe

China's National Audit Office has publicly identified Bank of China, one of the nation's four largest state-owned lenders, for allegedly evading 2.37 billion yuan (approximately $326 million) in taxes. This marks a rare instance of a major state bank being named in such a report.

The audit office stated that between April 2023 and August 2025, two subsidiaries of Bank of China acted as conduits. They allegedly disguised 11 private equity funds as public fund products by having numerous bank employees invest nominal amounts, ranging from 1 to 100 yuan. This scheme exploited tax benefits available to public funds, allowing the bank to avoid paying 2.37 billion yuan in taxes.

This development occurs as Beijing prioritizes financial stability and seeks to mitigate systemic risks. The audit office also flagged other financial institutions. Agricultural Bank of China was cited for improperly issuing 11.07 billion yuan in loans for non-standard farmland development projects between December 2021 and August 2025, with some funds allegedly diverted to wealth management products and debt repayment. Additionally, the state-owned conglomerate Everbright Group was criticized for governance deficiencies, including insufficient control over subsidiaries and inadequate supervision.

The scrutiny on Bank of China is part of a broader effort by Chinese authorities to address financial risks and shore up the domestic economy amidst trade and technological competition with the United States.