Because the company is registered in Beijing, the capital's discipline inspection commission began an investigation last month to apportion responsibility.
"The law would serve as a ballast to ensure financial stability and bolster market confidence," Liu said, citing the need for the law to help more clearly apportion the responsibility of different parties, such as real estate developers and banks, in resolving the financial risks caused by the property market downturn.
Tighter financial regulations have prompted Chinese banks to apportion greater resources to the real economy, the part that produces goods and services, and improve the overall quality of financial services while keeping risks at controllable levels, said an official of the China Banking Regulatory Commission.
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