China has resumed work on a set of banking cyber security regulations it suspended earlier this year, reviving a potential source of friction with the US weeks before Xi Jinping makes his first trip to Washington as China’s president, sources said.

China’s lenders have risks under control, despite concerns that massive local debts and ripple effects from failed informal lending schemes threaten the country’s financial stability, the country’s top banking regulator said.

China has tightened controls on pay for its top bankers, becoming the latest country to try to reduce financial risks by linking management of risk more closely to compensation.

China said it plans to link its bankers’ pay to risks taken by their institutions but has no plans for salary caps.

CHINESE cash could soon be flooding through the International Financial Services Centre after a landmark financial deal was unveiled yesterday.