Financial regulators have authorized a major state-owned asset management firm to increase its holdings in one of China's largest banks.

On August 3, the National Financial Regulatory Administration issued a formal response approving the China Great Wall Asset Management Co., Ltd. to boost its stake in China Construction Bank Corporation. The approved increase is limited to no more than 1.99% of the bank's total share capital.

Following the transaction, the total shareholding of China Great Wall Asset Management in China Construction Bank Corporation must not exceed 5% of the bank's outstanding shares.