Paper trail of fraud shows flaws in booming China funding system

Shanghai

AN archaic part of China's banking system meant to provide short-term funding to companies is coming under renewed scrutiny after at least two cases of fraud were uncovered recently.

An alleged fraud of almost 1 billion yuan (S$217 million) was discovered late last year at China Citic Bank Corp, where an employee colluded to fake documentation that companies typically use to get quick funds, people familiar with the matter said on Thursday.