BEIJING (Reuters) - China's banking regulator is preparing to revoke fund management qualifications for 17 domestic banks, designations that allow the lenders to conduct direct equity investment, financial magazine Caixin reported on Wednesday, without disclosing the source of the information.
The China Banking Regulatory Commission has given banks informal guidance that their registrations will be removed, Caixin reported. The move represent a setback for Chinese banks, which have been pushing into asset management as a way to address shrinking profits following a series of interest rate cuts.
The seventeen banks include China Minsheng Banking Corp (HK:1988), China Everbright Bank Co , Shanghai Pudong Development Bank Co , China Zheshang Bank Co, Bank of Beijing Co , Ping An Bank Co and Evergrowing Bank Co, according to data from the country's asset management.
The banks had registered to conduct private fund management with China's asset management association earlier this year, data from the association show.
The registrations conflict with China's commercial banking law, which forbids banks from directly investing in non-bank financial institutions and companies. China's asset management association is under the supervision of the China Securities Regulatory Commission.