Japanese and Chinese equities were sold-off on Wednesday afternoon on fears of bad bank debt and tight liquidity in China.
Osborne welcomes Chinese banks looking to expand in London, offering to break down regulatory barriers in a bid to reinforce itself as a renminbi hub.
Asian equity markets moved off session lows on Wednesday but investors continued to take profits after recent robust gains and as U.S. support for action against Syria dampened sentiment.
China stocks outperformed Asian equity markets on Monday on economic optimism while sentiment in other Asian shares rose after weak U.S. data soothed fears that the Federal Reserve would reduce its stimulus program anytime soon.
Asian stocks rallied on Friday, extending the previous day's strong gains as investors cheered robust global economic data and a commitment to easy monetary policy from global central banks.
Seventy percent of analysts covering Chinese financial stocks rate them a buy, yet financials are the worst performing this year in the group, data shows.
Singapore's Temasek Holdings says the size of its portfolio soared to a record high in the financial year ending March 2013.
China's government has been buying shares in the country's four big banks, a move analysts expect to continue until jitters about high interbank lending rates and the economic outlook ease.
China's government has stepped up efforts to lift confidence in the country's flagging stock markets by buying more shares in the four biggest commercial banks.
In another volatile afternoon session, the Nikkei tumbled 3.8 percent to a new two-month low on Wednesday while the yen inched higher after Prime Minister Shinzo Abe's third "Abenomics" arrow failed to impress investors.
Caution prevailed in Asian trade on Tuesday as investors grow concerned about the duration of global monetary stimulus ahead of Federal Reserve chief Ben Bernanke's testimony to the U.S Senate.
Bank of China has shut the account of North Korea's main foreign exchange bank, which was hit with U.S. sanctions in March.
Chinese executives at state-owned groups have long been among the lowest paid of their global peers, but even their apparently meager pay is generating controversy. The Financial Times reports.
Asian stock markets traded cautiously on Friday as investors digested a raft of regional corporate earnings and as attention turned to first-quarter U.S. GDP figures for signs of whether the rally on Wall Street can continue.
Chinese banks made $171 billion of new local currency loans in March, central bank data showed on Thursday, well above market expectations and adding to evidence of an economic recovery being fueled by ample credit.
Analysts say the sector remains robust even as China's biggest banks reported their worst annual earnings growth since going public.
Net profits at China's "big five" banks are expected to have risen nearly 12 percent to more than 750 billion yuan ($120.74 billion) in 2012, the official Shanghai Securities News reported on Thursday.
A group of Suntech Power lenders want the Chinese solar panel maker's main unit declared insolvent, a sign Beijing is losing support for the industry.
Asian stocks were under pressure on Wednesday as concerns rose if a bailout deal was still possible for Cyprus while Greater Chinese shares ignored the news to outperform the market as attention turned to domestic issues.
A move by China's Ping An Bank to ban its regional branches from approving mortgages may signal that Beijing is set to tighten controls on the property market to calm prices.