China's banking regulator is reportedly to revoke the fund management qualifications of 17 domestic banks.
It's understood the regulator has issued informal guidance to banks, warning them that their registrations will be removed.
The banks include China Everbright Bank, Shanghai Pudong Development Bank, Ping An Bank, Bank of Beijing and other 13 banks in the country.
Their registrations were issued earlier this year by China's Asset Management Association, which is under the supervision of the country's securities regulator.
But the registrations apparently conflict with China's commercial banking law that bans banks from directly investing in non-bank financial institutions and companies.
The move means a setback for Chinese banks, which have been seeking to address shrinking profits following a series of interest rate cuts.