Huaxia Bank fined ¥87,250,000 RMB ($12.12 million USD) — 2025’s largest financial penalty so far

Huaxia Bank fined ¥87,250,000 RMB ($12.12 million USD) in a regulatory action announced Sept 5, 2025.

China’s National Financial Regulatory Administration (金融监管总局, Jinrong Jianguan Zongju) disclosed multiple administrative penalties on that date.

Investors, founders, and financial operators should read this closely to understand regulatory tone and operational risks in Chinese banking.

Regulatory Fines – September 5, 2025

Institution	Fine (RMB)	Fine (USD)	Reason
Huaxia Bank	¥87,250,000	$12.12 million	Imprudent loan, bill & interbank management; noncompliant regulatory data.
Zheshang Bank	¥11,308,000	$1.57 million	Imprudent internet lending management.
Jianxin Financial Asset Investment Co., Ltd.	¥850,000	$118,000	Imprudent debt-for-equity project; irregular service fee pricing.

Quick summary

Huaxia Bank (Huáxià Yínháng 华夏银行) received the largest penalty so far in 2025.

The fine was for deficiencies in loan, bill and interbank business management and for noncompliant regulatory data reporting.

The bank said it accepts the regulator’s decision, will analyze root causes, implement rectifications, and hold responsible parties accountable.

What the regulator announced

On the afternoon of September 5, the National Financial Regulatory Administration published enforcement disclosures.

Three financial institutions were named in the announcement.

• Huaxia Bank (Huáxià Yínháng 华夏银行) — fined ¥87,250,000 RMB ($12.12 million USD) for imprudent management of certain loans, bills and interbank business and for noncompliant regulatory data submissions.
• Several senior Huaxia staff received warnings or smaller individual fines totaling ¥200,000 RMB (~$27,778 USD).
• Zheshang Bank (Zhèshāng Yínháng 浙商银行) — fined ¥11,308,000 RMB ($1.57 million USD) for imprudent management of internet lending and related businesses, and the relevant responsible person received a warning.
• Jianxin Financial Asset Investment Co., Ltd. (建信金融资产投资有限公司, Jiànxìn Jīnróng Zīchǎn Tóuzī Yǒuxiàn Gōngsī) — fined ¥850,000 RMB ($118,000 USD) for imprudent implementation of a debt‑for‑equity project and irregularities in service fee pricing procedures, and a responsible employee was banned from working in the banking sector for five years.

Huaxia Bank Financial Performance (H1 2025)

Metric	Value (RMB)	Change (YoY)
Operating Income	¥45,522,000,000	-5.86%
Net Profit Attributable to Shareholders	¥11,470,000,000	-7.95%
Net Interest Income	N/A	-3.6%
Net Fees and Commissions	N/A	+2.55%

Huaxia Bank Asset Quality (H1 2025)

Metric	Value (RMB)	Change from YE 2024
Total Assets	¥4,549,625,000,000	+3.96%
Non-performing Loan Balance	¥38,670,000,000	+¥756,000,000
Non-performing Loan Ratio	1.6%	Unchanged
Provision Coverage Ratio	156.67%	-5.22 percentage points

Huaxia Bank response

Huaxia Bank (Huáxià Yínháng 华夏银行) told reporters the penalty stems from an on‑site inspection in 2023 focused on risk management and internal control effectiveness.

The bank said it sincerely accepts the regulatory decision.

The bank committed to analyze root causes, carry out comprehensive rectifications, and impose strict disciplinary action on responsible personnel.

Recent financials for Huaxia Bank — H1 2025

The half‑year report gives a snapshot of performance and some stress points.

• Operating income: ¥45,522,000,000 RMB (455.22亿元) — down 5.86% year‑over‑year (≈ $6.32 billion USD).
• Net profit attributable to shareholders (归母净利润): ¥11,470,000,000 RMB (114.7亿元) — down 7.95% year‑over‑year (≈ $1.59 billion USD).
• Net interest income: down 3.6% year‑over‑year.
• Net fees and commissions: up 2.55% year‑over‑year.

Balance sheet and asset quality as of June 30, 2025 are below.

• Total assets: ¥4,549,625,000,000 RMB (45,496.25亿元) — up 3.96% from year‑end 2024 (≈ $631.34 billion USD).
• Non‑performing loan balance: ¥38,670,000,000 RMB (386.7亿元), up ¥756,000,000 from year‑end 2024.
• Non‑performing loan ratio: 1.6% — unchanged from year‑end 2024.
• Provision coverage ratio: 156.67% — down 5.22 percentage points from year‑end 2024.

Other enforcement actions highlighted

The regulator’s disclosures also noted individual bans and criminal developments connected to other banks.

• Two former employees of Industrial and Commercial Bank of China (ICBC, Gōngshāng Yínháng 工商银行) — identified as Li and Yi in the notice — received industry bans for five and seven years respectively, for abuses including unauthorized wealth‑management activities and breaching prudent operation rules.
• Public prosecution information shows an earlier case involving a former senior ICBC asset‑management executive who was investigated, removed from Party and public office, and later prosecuted on charges including embezzlement and bribery.

Why this matters — practical takeaways for investors and operators

This penalty reinforces a trend of tightened regulatory scrutiny across Chinese banks.

Areas under focus include risk management, interbank operations, internet lending governance, and the accuracy of regulatory reporting.

For investors, the headline fine is material but the financials put scale in context.

Huaxia’s total assets are ¥4.55 trillion RMB (≈ $631.34 billion USD), so while the fine is significant, the bank remains large in scale.

That said, rising non‑performing loan balance and a falling provision coverage ratio point to operational pressure that investors should monitor.

For counterparties and fintech partners, this is a reminder to prioritize compliance‑grade data reporting and robust interbank controls before scaling products or integrations.

For founders and product teams in lending or payments, the message is clear: rigorous governance and transparent reporting reduce the chance of painful remediation down the line.

• Increased Regulatory Scrutiny: Expect continued emphasis on risk management, interbank operations, internet lending governance, and accurate regulatory reporting.
• Financial Impact: While the fine is significant, Huaxia Bank’s large asset base puts it in context, but declining profits and asset quality trends are key monitoring points.
• Operational Imperatives: Strong internal controls, compliance-grade data reporting, and robust interbank controls are crucial for banks and their partners.
• Importance of Governance: Rigorous governance and transparent reporting are essential to avoid future penalties and maintain trust.

Action checklist for stakeholders

• Investors: Monitor NPL trends, provision coverage ratio, and quarter‑on‑quarter operating income movements.
• Bank execs: Re‑audit interbank and bill operations and validate regulatory data pipelines against internal controls.
• Fintech partners: Ensure contracts and integrations include audit rights and clear data governance obligations.
• Compliance teams: Run scenario tests for regulatory inspections and document remediation timelines publicly when applicable.

Linking opportunities

Use these anchor texts for internal or external linking to deepen context across your site.

• Huaxia Bank investor relations — link to Huaxia’s H1 2025 report or IR page.
• National Financial Regulatory Administration enforcement — link to regulator announcements or enforcement digest.
• Non‑performing loan ratio trends — link to industry data on NPLs in Chinese banks.
• Internet lending governance — link to regulatory guidance and best practices for online lending.

Bottom line

The Huaxia Bank fine is a signal that regulators are enforcing higher standards on operational controls and data reporting.

It is the largest financial penalty announced in 2025 so far and a useful case study for investors, founders, and compliance teams watching China’s banking landscape.

Huaxia Bank fined ¥87,250,000 RMB ($12.12 million USD) — stay vigilant on asset quality and reporting controls.

References

• 金融业年内最大罚单！华夏银行被罚8725万元！最新回应 – 东方财富
• Caixin Global – Caixin Media
• 券商中国 – Official Site