China to crack down on bank loan misuse-regulator

BEIJING, Mar 5 (Reuters) Chinese authorities have evidence of ''relatively serious'' misuse of bank loans for speculation in the stock market and other unauthorised purposes, the country's banking regulator said today.

Liu Mingkang, chairman of the China Banking Regulatory Commission, told reporters his agency would stamp out such irregularities. He gave no details.

Liu was speaking on the sidelines of the first day of the annual session of the National People's Congress, China's parliament.

A regulatory official told Reuters recently that the CBRC believed as much as 90 per cent of personal credit extended by banks was being channeled illegally into the stock market.

Reuters AKJ DB1022