China fines banks over wealth management violations

Pedro Gonçalves
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China fines banks over wealth management violations

China's banking and insurance regulator has slapped fines of more than $22m on six chinese banks for breaching regulations on wealth management products.

These include Bank of Communications Co Ltd and China Minsheng Banking Corp Ltd , and two banking officers, according to statement on the regulator's website. The other four banks are China Everbright Bank Co Ltd , China Citic Bank Corp Ltd , China Zheshang Bank Co Ltd and China Bohai Bank, it added.

The fines were for breaking different regulations, ranging from disclosure of information regarding wealth management products to internal governance issues at banks.

The punishments come as China's regulators toughen their stance on market irregularities, targeting risky business practices such as shadow banking. It was one of the largest penalties handed out this year

The banking regulator and its local branches across China issued 800 fines on banks and individuals in the third quarter of this year, rising by a third from the second quarter, according to the official Economic Information Daily run by state news agency Xinhua, the South China Morning Post reported.