China's top anti-corruption agency will review the files of 25 financial institutions regarding their lending, investment, and regulatory records and seek explanations on specific deals or decisions related to the private firms.

The Communist Party will formally investigate the individuals suspected of engaging in inappropriate dealings, including disciplinary action. It could also slash the executives' compensation at the state financial juggernauts.

The inspectors in charge of examining the institutions will "thoroughly search for any political deviations." China will probe state banks' lending to faltering developer Evergrande struggling with over $300 billion in liabilities and lending to Jack Ma's beleaguered fintech Ant Group and ride-hailing firm undergoing cybersecurity probe DiDi.

Regulators, including China's central bank and the top banking, insurance, and securities watchdogs, have also attracted scrutiny for alleged negligence in supervising companies or become too close to industry players.

Price Action: BABA shares traded higher by 2.20% at $165.07 on the last check Monday.