From The New York Times:
Hoping to prepare for foreign competition, some of the largest banks are trying to revamp their operations and tighten controls. The government helped by dipping into its huge foreign currency reserves last year to wipe out some $22.5 billion in bad loans at the Bank of China and the China Construction Bank.
Some of the worst-performing loans were taken over by state asset management companies. But they, too, are in trouble. In January, the government said four big state-run asset management companies engaged in illegal practices that involved $800 million.
Thanks to Yong Liu for providing this link through del.icio.us
