The China Banking Regulatory Commission has given banks informal guidance that their registrations will be removed, Caixin reported. The move represent a setback for Chinese banks, which have been pushing into asset management as a way to address shrinking profits following a series of interest rate cuts.

The seventeen banks include China Minsheng Banking Corp (>> China Minsheng Banking Corp Ltd)<1988.HK>, China Everbright Bank Co (>> China Everbright Bank Co., Ltd), Shanghai Pudong Development Bank Co (>> Shanghai Pudong Development Bank Co. Ltd), China Zheshang Bank Co, Bank of Beijing Co (>> Bank of Beijing Co.,Ltd.), Ping An Bank Co (>> Ping An Bank Co Ltd) and Evergrowing Bank Co, according to data from the country's asset management.

The banks had registered to conduct private fund management with China's asset management association earlier this year, data from the association show.

The registrations conflict with China's commercial banking law, which forbids banks from directly investing in non-bank financial institutions and companies. China's asset management association is under the supervision of the China Securities Regulatory Commission.

(Reporting by Shu Zhang and Matthew Miller; Editing by Kenneth Maxwell)