SHANGHAI -- China Banking Regulatory Commission Chairman Shang Fulin soothed concerns over Chinese banks' liquidity conditions on Saturday, saying there is no liquidity shortage in China's banking system as both and required reserves are adequate.

Shang said the recent cash crunch would not affect the stable operation of Chinese banks, but he acknowledged that some banks needed to improve their liquidity and risk management.

Shang promised to strengthen regulation over wealth management products (WMPs), especially the behaviors of commercial banks. He urged banks to improve transparency of WMPs sales.

The CBRC chairman said the authorities would continue regulating local government financing vehicles (LGFVs), and work out plans to standardize LGFVs.

Shanghai said the regulators want to simplify financial structure and advance financial reforms on the basis of real economy.