The China Banking Regulatory Commission says it will punish eight Chinese banks that have been involved in improper loans.
According to various local media reports, the banks include the Bank of Communications Beijing Branch, Bank of Beijing, China Merchants Bank, Industrial and Commercial Bank of China, CITIC Bank and Shenzhen Development Bank. They will be fined an unspecified amount and several of their managers will be reprimanded, according to CBRC.
CBRC says these banks have provided loans to China Nuclear Engineering & Construction Corporation and China Ocean Shipping Company without properly monitoring the lending, which has led to the two companies violating lending conditions by investing loans in real estate and securities.
China Nuclear Engineering is said to have misused about RMB2.3 billion borrowed since 2001 from the Bank of Beijing and the Beijing branch of the Bank of Communications. China Ocean Shipping, also known as COSCO, has borrowed RMB2.7 billion since June 2006 from six banks and used at least RMB2.4 billion to invest in initial public stock offerings.