Fund managers are upset over a possible regulatory change that would allow mainland banks to invest in and manage mutual funds, according to a South China Morning Post report. They fear the banks could use their distribution channels to dominate the business. The China Banking Regulatory Commission has been studying plans to permit commercial banks to launch fund-management companies. China's new investment fund law, which went into effect in June, makes no mention of a ban on banks participating in fund management, as earlier legislation stipulated. "Banks will be biased towards the fund-management companies in which they own equity stakes," said a Sino-foreign fund venture executive.