China's National Audit Office accused the Bank of China (SHA:601988, HKG:3988) earlier this week of evading 2.37 billion yuan in taxes by misusing investment fund structures between April 2023 and August 2025, the South China Morning Post reported Thursday.
Publicly offered mutual funds in China are usually exempt from corporate income tax.
The Bank of China evaded taxes by improperly using tax incentives meant for publicly offered mutual funds, the National Audit Office reportedly said. The bank allegedly channelled investments via two affiliated financial institutions and enlisted several employees as nominal investors to pass off 11 privately offered funds as public funds, according to the report, citing the audit office.
The employees contributed between 1 yuan and 100 yuan each, SCMP reported.
The Bank of China did not immediately reply to' request for comment.
Shares of the bank rose more than 1% in recent trade.
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