December 1, 2017 / 3:32 AM / 15 days ago

Regulator fines China Minsheng Banking $4.2 million for fake wealth product sales

SHANGHAI (Reuters) - China’s banking regulator has fined a Beijing branch of China Minsheng Banking Corp (1988.HK) 27.5 million yuan ($4.16 million) for selling fake wealth management products, according to a notice posted on its official website on Thursday.

In April, the bank said the head of its Hangtianqiao sub-branch and some staff were detained and being investigated in connection with missing funds worth 1.65 billion yuan ($240 million) involving more than 150 customers.

The fine is the largest imposed by the CBRC this year, according to Chinese business magazine Caijing.

    The punishment comes amid a crackdown on risk in China’s financial system, which has netted both heads of regulatory authorities and bank officials.

    The China Banking Regulatory Commission (CBRC) imposed life-time banking work bans on three staff at the lender who took part in the scam, said the statement, which involved forged wealth management product contracts and bank seals.

    Other punishments included 500,000 yuan fines, temporary suspension from banking work, and removal from office, the CBRC statement said.

    ($1 = 6.6122 Chinese yuan)

    Reporting by Beijing Speed Team and Engen Tham; Editing by Richard Borsuk

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