The move comes after the collapse of a product marketed by an employee of a branch at Huaxia Bank Co.

WSJ: China Tightens Regulations on Wealth Management

And the Shanghai branch of Huaxia Bank has been exposed by a government audit in a scheme to underreport its nonperforming loans, according to Chinese news reports.

FORBES: Broken China

Chinese investors caught up in a high-profile dispute with local bank Huaxia over losses related to an increasingly scrutinized type of short-term investment product have been repaid.

WSJ: What's News