BoC: Fraud case won't derail IPO
1 February 2005
The Bank of China (BoC) said an ongoing fraud case involving up to RMB1bn (US$121m) was isolated and would not affect its plan to float shares. The comments from China's largest foreign exchange bank, which is gearing up for a US$1bn listing, followed state media reports that the manager of a sub branch in the northeastern city of Harbin fled the country after at least RMB300m, including corporate deposits, disappeared from the bank. Bank of China spokesman Wang Zhaowen told reporters the bank was still investigating the case, which involved "several hundred billion yuan" and a number of firms including Shanghai-listed Northeast Expressway Co. A statement from the Chinese banking regulator said the BoC suffered from weak internal controls and needed to improve management.