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By Li Zengxin
Updated: 2007-08-03 16:30

At the same time, the banking regulator is keeping a close eye on illegal funds flowing to the stock market. The commission has been always vigilant on bank loans entering the market and will continue focusing on preventing such behavior, said Hao Aiqun, director of the first supervision division of the China Banking Regulatory Commission yesterday.

In June, the regulator punished eight branches of commercial banks convicted of misappropriation of loans to invest in the stocks and days ago, it warned two State-owned enterprises for their illicit investment in the stock and real estate markets.

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