Bank of China Disguised 11 Private Equity Funds as Public Funds, Evaded 2.367 Billion Yuan in Taxes: Audit

By Xu Jia, Changjiang Business Daily

On June 23, the National Audit Office (NAO) reported to the Standing Committee of the National People's Congress on its audit of the 2025 central budget execution and other fiscal revenues and expenditures, naming several financial institutions including Bank of China (601988.SH).

The NAO pointed out that between April 2023 and August 2025, Bank of China arranged for two of its subsidiaries to act as conduits. By enrolling employees with nominal contributions of as little as 1 yuan to 100 yuan — a practice known as "head-count padding" — the bank disguised 11 private equity funds as public mutual funds, exploiting the mutual fund income tax exemption to evade 2.367 billion yuan in taxes.

As one of China's major state-owned banks, Bank of China's exposure of systematic tax arbitrage violations reveals a disconnect between its business development and its internal controls, compliance, and risk governance.

According to financial data, in the first quarter of 2026, Bank of China achieved operating revenue of 178.846 billion yuan, up 8.44% year-on-year; net profit attributable to shareholders of the parent company reached 56.631 billion yuan, up 4.17% year-on-year. During the reporting period, the bank's income tax expenses amounted to 13.805 billion yuan.

On June 24, in response to the NAO report, Bank of China stated that it sincerely accepts audit supervision, places great importance on the issues identified, will conduct a thorough analysis of the root causes, implement immediate corrective measures, and refine its policies to drive solid progress in rectification.

Improper Profiteering Using Public Fund Tax Policies

On June 23, the NAO submitted the "Audit Work Report on the Execution of the 2025 Central Budget and Other Fiscal Revenues and Expenditures of the State Council" to the NPC Standing Committee. The report's findings on irregularities in the financial sector sparked heated market discussion.

According to the audit report, from April 2023 to August 2025, Bank of China used two subsidiaries as channels, padding headcount with employees making contributions as low as 1 yuan to 100 yuan. This allowed them to disguise 11 private equity funds as public mutual funds, thereby evading 2.367 billion yuan in taxes by exploiting the tax exemption policy for mutual funds.

Market observers have noted that the public mutual fund corporate income tax exemption was originally designed to reduce the wealth management costs for ordinary residents and encourage public participation in capital markets through standardized public fund products — a pro-small-investor inclusive fiscal policy. In recent years, regulators have been tightening the noose on related arbitrage activities. Bank of China's two-and-a-half-year pattern of systematic fraud crosses both tax and asset management compliance red lines, making it a landmark case of tax-related violations among state-owned banks.

Changjiang Business Daily noted that Bank of China's tax evasion operation is a microcosm of financial institutions improperly profiting from preferential financial policies. The audit report also cited cases involving Agricultural Bank of China and China Everbright Group, with the primary issue being that financial enterprises failed to fully leverage their distinctive advantages.

Specifically, Agricultural Bank of China, as the main force serving agriculture, rural areas, and farmers, failed to conduct adequate pre-loan review between December 2021 and August 2025, illegally issuing 11.066 billion yuan in loans to non-high-standard farmland projects, with some funds diverted for purchasing wealth management products and repaying debts. China Everbright Group, as a financial holding company, did not control decision-making power over some of its wholly-owned subsidiaries as of end-August 2025, had weak management over certain directly controlled subsidiaries, and individual subsidiaries misused the "Everbright" brand.

Additionally, the NAO conducted focused audits on four banks — ICBC, China Construction Bank, Bank of Communications, and China CITIC Bank — regarding their implementation of technology finance policies. The main issues identified were that specialized technology finance products and services failed to precisely address the urgent financing needs of enterprises.

其中，农业银行作为服务"三农"的主力军，2021年12月至2025年8月贷前审查不严，违规向非高标准农田项目发放贷款110.66亿元，部分资金被挪用于购买理财、偿还债务等。中国光大集团作为金融控股公司，至2025年8月底，对部分绝对控股子公司未控制决策权，对部分直管子公司管控不力，个别子公司滥用"光大"字号。

此外，审计署还重点审计了工商银行、建设银行、交通银行、中信银行等4家银行落实科技金融政策情况，发现的问题主要为科技金融专属产品和服务未精准对接企业融资急难愁盼，"叫好不叫座"。

具体而言，上述4家银行的126家省级分行未将科创企业创新能力量化积分作为敢认敢贷的依据。642.22亿元贷款发放时未考虑创新积分，仅在事后统计时贴上"标签"。同时，4家银行的478.5亿元贷款中，有101.09亿元已足额提供传统抵押物或无需抵押物。

此外，4家银行发放的54.37亿元贷款，未起到对成熟期科创企业并购同类企业或上下游企业的支持作用，实为企业股权回购和普通融资工具。

上述银行的部分金融服务还存在名不副实的情况，4家银行的970家科技支行中，有194家实无科技特色，个别科技支行的科技贷款余额占比远低于非科技支行；4家银行未严格落实对小微型科技企业设置更高不良贷款容忍度的要求，一些科创产品不良率刚到2%或3%即暂停业务。

单季所得税费用超138亿

作为国有大行之一，近年来中国银行基本面整体保持稳定。但此次被曝光系统性税收套利违规，也彻底暴露其经营发展与内控合规、风险治理的脱节。

长江商报记者注意到，2025年，中国银行的所得税费用为433.52亿元，2026年一季度的所得税费用为138.05亿元。

2025年，中国银行实现营业收入6583.10亿元，同比增长4.48%；归母净利润2430.21亿元，同比增长2.18%；平均总资产回报率（ROA）0.70%，净资产收益率（ROE）8.94%。

报告期内，中国银行实现利息净收入4407.05亿元，同比下降1.83%；净息差1.26%，同比下降14个基点。

2026年一季度，中国银行实现营业收入1788.46亿元，同比增长8.44%；利息净收入1161.43亿元，同比增长7.81%，净息差维持在1.26%；归母净利润566.31亿元，同比增长4.17%。

截至2026年3月末，中国银行资产总计39.59万亿元，比上年末增加1.24万亿元，增长3.22%；发放贷款和垫款总额24.45万亿元，比上年末增加9979.10亿元，增长4.25%；吸收存款总额27.17万亿元，比上年末增加9894.46亿元，增长3.78%。

资产质量方面，截至2026年3月末，中国银行不良贷款总额2970.11亿元，不良贷款率1.22%，比上年末下降0.01个百分点，不良贷款拨备覆盖率203.17%，比上年末上升2.80个百分点。

截至2026年3月末，中国银行核心一级资本充足率为12.18%，一级资本充足率为13.92%，资本充足率为18.23%。

有业内分析人士向长江商报记者分析，国有大行兼具经营性与社会性双重属性，既要稳经营、提效益，更要守底线、担责任，坚决杜绝利用资源优势钻政策空子、靠违规操作谋利。

对于本次被审计署通报，6月24日，中国银行回应称，诚恳接受审计监督，高度重视审计指出问题，深刻剖析原因，坚持立行立改，细化明确措施，扎实推进整改。

中国银行表示，下一步将深入贯彻党中央决策部署，落实审计整改要求，持续提升风险管理水平和合规经营能力，服务多层次资本市场建设和实体经济高质量发展。

Originally published by The Paper (澎湃新闻) via Changjiang Business Daily: https://www.thepaper.cn/newsDetail_forward_33446388