Shares of BANK OF CHINA (HKEX: 03988) fell more than 3%. At the time of writing, the stock was down 3.61% to HK$5.08, with a turnover of HK$698 million.

This decline follows a report published on the National Audit Office's website, detailing findings from the State Council's audit of central budget execution and other fiscal revenues and expenditures for 2025. The report indicates that between April 2023 and August 2025, BANK OF CHINA arranged for two of its subsidiary financial institutions to act as conduits. By having a large number of its own employees contribute nominal amounts ranging from 1 to 100 yuan to "make up the numbers," the bank repackaged 11 private funds as public fund products. This scheme exploited a policy benefit that exempts public funds from income tax, resulting in cumulative tax evasion totaling 2.367 billion yuan.

In response to media inquiries, BANK OF CHINA stated that it sincerely accepts audit supervision, attaches great importance to the issues raised, is conducting a deep analysis of the causes, and is committed to implementing immediate corrective actions with detailed and concrete measures to advance the rectification process.