Commentary Beijing is tightening governance around banks and insurance companies to bar large shareholders from having excessive influence and engaging in unfair dealings. China wants to rein in financial sector risk and corporate governance. Many of these affiliated deals generated losses or bad debts for banks. But there are other layers to this new round of regulations—a new phase of the anti-corruption campaign waged by CCP regime boss Xi Jinping to root out political dissent. The new regulations went into effect as of Sept. 30 following an initial draft published in June. The problem, as explained by the China Banking and Insurance Regulatory Commission (CBIRC) in a FAQ, is that “a small number of major shareholders have abused shareholder rights, improperly interfered with company operations, sought control in violation of regulations, and used affiliated transactions to transfer interests and transfer assets.” In other words, certain powerful individuals affiliated with these …