The China Banking Regulatory Commission, China's bank regulator known as CBRC, couldn't be reached to comment.

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"The entire process must be conducted swiftly with no dragging or delay, " the CBRC said.

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The bank regulator, the CBRC, is already tightening regulations around wealth management products and local government lending.

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On Friday, the CBRC announced there had been an unspecified increase in bad loans in the first quarter of this year.

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Is it worrisome that this off-the-radar segment of China finances is estimated by CBRC to be growing at a clip of 25% year over year?

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Zhang Qiang, vice president at China Citic Bank, said at a briefing in March that nonstandard investment accounted for 64%, or 151.5 billion yuan, of all wealth-management products at the bank, substantially higher than the 35% limit set by the CBRC.

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