China self-regulatory body probes debt businesses at major state banks

SHANGHAI (Reuters) - A Chinese self-regulatory body overseeing the interbank market has stepped up efforts in regulating bond businesses by probing into some of the country's major state-owned banks this week.

The National Association of Financial Market Institutional Investors (NAFMII) said late on Thursday that it has launched a so-called self-disciplinary investigation into suspected violations in the debt finance instrument underwriting business at China Construction Bank,.

The announcement marks the third such investigation into alleged wrongdoings at market participants this week. On Tuesday, NAFMII said it was looking into violations in the financial bond issuance business at policy bank Export-Import Bank of China and alleged violations in the underwriting business at China Minsheng Bank,.

The regulatory body urged market participants to "firmly establish a sense of market responsibility, strictly comply with the relevant regulatory provisions and self-regulatory rules in the course of engaging in relevant business, and conduct business in a compliant manner to maintain the order of the interbank bond market operations," it said in an online statement.

However, NAFMII didn't offer further details about the investigations.

The public relations representative for China Construction Bank did not immediately reply to a request for comment. Calls to Export-Import Bank of China for a comment were not answered. China Minsheng did not immediately reply to requests for comment sent by email.

On Monday, NAFMII said that another five financial institutions including Guangdong Finance Trust Co, Bank of Dalian, Bank of Zhengzhou, Bank of Qingdao, Jiangxi Bank were penalized after violations in the interbank bond market businesses.

The public relations representative for Guangdong Finance Trust was not available to comment on the NAMFII statement. Calls to the investor relations department at Bank of Dalian were not answered. The Bank of Zhengzhou and Bank of Qingdao did not immediately reply to emails requesting comment. Jiangxi Bank did not immediately reply to a request for comment.

In April, NAFMII said it would investigate Industrial and Commercial Bank of China (ICBC),, the world's largest listed lender by assets.

(Reporting by Shanghai Newsroom; Editing by Christian Schmollinger)