The eight domestic banks are Industrial & Commercial Bank of China, Bank of China, Bank of Communications, China Merchants Bank, China Citic Bank Corporation, Industrial Bank, Shenzhen Development Bank, and Bank of Beijing, MarketWatch revealed.
According to the Associated Press, the banks will be fined, with a number of bank managers reprimanded. In addition, one bank will be suspended from lending.
Banks must learn a lesson from this and improve management and stick to good international practice of knowing their customers, the China Banking Regulatory Commission said in a statement, reported by the Associated Press.
This clampdown is expected to deter other firms from violating the banking regulations, which forbid any state firms to invest directly in the stock market, MarketWatch reported.
