The Communist Party took over the country in 1949. After which, the Party made Chinese banks credit agencies for the government and state-owned companies.

Until as recently as the 1990s, branch managers of the banks was appointed by local party committees. 

What's more - loans were not expected to be repaid. The government lended to itself...so...

Oversight was lax if there was any at all. Fraud was rampant.

And still.....Investors have poured $37 billion into the Bank of China, China Construction Bank and Industrial & Commercial Bank of China in the past 15 months.

What are these investors thinking?

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