China's Baoshang takeover seen as precursor to small bank consolidation

China's Baoshang takeover seen as precursor to small bank consolidation

People's Bank of China. Photo: Bloomberg

China is set to see consolidation among its smaller banks after a rare government seizure of a troubled Inner Mongolia lender in May, as Beijing looks to avert any systemic risk amid a slowing economy and an escalating trade war with the United States.