China authorities summon banks to clarify probe details
Sign up now: Get insights on Asia's fast-moving developments
China Construction Bank is among the several state-owned banks and lenders summoned.
PHOTO: REUTERS
BEIJING – Chinese authorities summoned several state-owned banks and other lenders on Friday to clarify details of closely watched industry probes, reported local media.
The investigations by National Association of Financial Market Institutional Investors (NAFMII), an entity governed by China’s central bank that oversees interbank bond sales, are looking into alleged violations including claims that banks and issuers reach agreed pricing before issuance, Cailian reported.
The financial news service did not name any institutions or state the source of the information.
The association has inquired about the banks’ low underwriting fees on a monthly basis, it said.
China’s credit markets closed out the week trying to digest the implications of the new probes into bond underwriting at several major banks, Bloomberg News reported.
The authorities have for years sought to improve the oversight of the debt market by clamping down on practices that unfairly skew prices, inflate demand and mislead investors.
NAFMII said on Tuesday it was probing Export-Import Bank of China for alleged violations in financial bond issuance, and was also looking into alleged violations in debt arranging at China Minsheng Bank.
On Thursday, the agency said it had launched a so-called self-discipline investigation into China Construction Bank for alleged violations in underwriting services. BLOOMBERG
