China regulator frets over confidence crisis after investment product fails

Chinese banking regulators are concerned that the failure of an investment product sold through a Hua Xia Bank Co branch could shatter depositor confidence, three sources told Reuters after a heated, closed-door meeting late on Thursday.

The China Banking Regulatory Commission has decided to hold off on any ruling regarding the Hua Xia case, however, until the conclusion of a police investigation, the sources said.

In the meantime, representatives of every Chinese bank will be summoned in for “guidance” on risk management, they said.

via Business feed http://www.scmp.com/business/banking-finance/article/1099853/china-regulator-frets-over-confidence-crisis-after