--- title: "Criticized by the National Audit Office for \"faking headcounts\" to evade taxes! Bank of China plummets over 6%, with all domestic bank stocks falling" type: "News" locale: "en" url: "https://longbridge.com/en/news/290781805.md" description: "The National Audit Office report disclosed that Bank of China used employees to \"gather heads\" to package private equity funds as public funds, evading taxes of 2.367 billion yuan. Affected by this news, Bank of China's stock price plummeted over 6%, and the five major state-owned banks, including China Construction Bank and Industrial and Commercial Bank of China, as well as domestic banks like China Merchants Bank and CITIC Bank, all weakened. Bank of China responded by sincerely accepting supervision and promising to make immediate corrections to enhance compliance management capabilities" datetime: "2026-06-25T05:51:28.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290781805.md) - [en](https://longbridge.com/en/news/290781805.md) - [zh-HK](https://longbridge.com/zh-HK/news/290781805.md) --- # Criticized by the National Audit Office for "faking headcounts" to evade taxes! Bank of China plummets over 6%, with all domestic bank stocks falling On June 23, the National Audit Office released the "Audit Work Report on the Implementation of the Central Budget and Other Financial Revenues and Expenditures for the Year 2025." The report disclosed tax violation issues involving the Bank of China in the section on financial risks in the major risk audit situation. As a result, the Bank of China (3988) plummeted over 6%. At the same time, several domestic banks were also named by the Audit Office for tax violations, causing their stock prices to weaken collectively. During the trading session, the five major state-owned banks all fell, with China Construction Bank (0939) down 2.8%, Industrial and Commercial Bank of China (1398) down 3.4%, Bank of China down 6.6%, Agricultural Bank of China (1288) down 4.3%, and Bank of Communications (3328) down 2.7%. Additionally, China Merchants Bank (3968) fell 2.4%, and CITIC Bank (0998) fell 3.4%. The National Audit Office report pointed out that between April 2023 and August 2025, the Bank of China arranged for two of its subordinate financial institutions to serve as business channels, using a large number of its employees to contribute amounts ranging from 1 yuan (RMB, the same below) to 100 yuan to "meet the headcount" and packaged 11 private equity funds as public fund products, taking advantage of the tax exemption policy for public funds to evade tax payments totaling 2.367 billion yuan. According to Dahe Daily, the Bank of China responded by sincerely accepting the audit supervision, attaching great importance to the issues pointed out in the audit, deeply analyzing the reasons, insisting on immediate rectification, detailing clear measures, and solidly advancing the rectification. The Bank of China stated that the next step will be to thoroughly implement the decisions and deployments of the Party Central Committee, fulfill the audit rectification requirements, continuously enhance risk management levels and compliance operating capabilities, and serve the construction of a multi-level capital market and the high-quality development of the real economy ### Related Stocks - [03988.HK](https://longbridge.com/en/quote/03988.HK.md) - [601998.CN](https://longbridge.com/en/quote/601998.CN.md) - [600036.CN](https://longbridge.com/en/quote/600036.CN.md) - [IDCBY.US](https://longbridge.com/en/quote/IDCBY.US.md) - [601939.CN](https://longbridge.com/en/quote/601939.CN.md) - [CICHY.US](https://longbridge.com/en/quote/CICHY.US.md) - [601988.CN](https://longbridge.com/en/quote/601988.CN.md) - [03968.HK](https://longbridge.com/en/quote/03968.HK.md) - [BACHY.US](https://longbridge.com/en/quote/BACHY.US.md) - [01398.HK](https://longbridge.com/en/quote/01398.HK.md) - [00998.HK](https://longbridge.com/en/quote/00998.HK.md) - [601398.CN](https://longbridge.com/en/quote/601398.CN.md) - [00939.HK](https://longbridge.com/en/quote/00939.HK.md) - [01288.HK](https://longbridge.com/en/quote/01288.HK.md) - [601288.CN](https://longbridge.com/en/quote/601288.CN.md) - [ACGBY.US](https://longbridge.com/en/quote/ACGBY.US.md) - [03328.HK](https://longbridge.com/en/quote/03328.HK.md) - [601328.CN](https://longbridge.com/en/quote/601328.CN.md) - [02388.HK](https://longbridge.com/en/quote/02388.HK.md) ## Related News & Research - [China CITIC Bank Reshuffles Board Secretariat, Appoints Zhang Qing as Business Director](https://longbridge.com/en/news/290967317.md) - [ICBC Board Approves Liability Insurance and Committee Roles for Director Liu Fang](https://longbridge.com/en/news/290970695.md) - [China Merchants Bank Confirms High Turnout and Compliance at 2025 AGM](https://longbridge.com/en/news/290838921.md) - [China Merchants Bank Sets 2025 Final Dividend and Withholding Tax Terms for H-Shareholders](https://longbridge.com/en/news/290944082.md) - [SUNeVision unit signs HK$3 billion loan facilities with Bank of China (Hong Kong)](https://longbridge.com/en/news/290807407.md)