China Minsheng Banking has been fined RMB27.5m ($4.1m) by China Banking Regulatory Commission for selling fake wealth management products.
The regulator alleged the bank’s Hangtianqiao branch in Beijing of duping over 150 high net worth clients by selling them RMB1.65bn worth of fake wealth products as an exclusive offering.
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By GlobalDataApart from the fine, the bank’s 13 bank executives and staff were penalised and banned from the industry. This includes a permanent ban on head of the bank’s Hangtianqiao branch, Zhang Ying.
The fine comes amidst a crackdown by the Chinese government on the domestic financial system in order to curb risks. In September 2017, Chinese regulators declared initial coin offerings (ICOs) as illegal and ordered an immediate ban on such fundraising activities.