Assets held in custody by China's banking sector reached 103.5 trillion yuan ($16 trillion) at the end of June, increasing 53.6 percent from the previous year, the China Banking Association said.

The rapid growth shows that commercial banks are accelerating the development of asset custody as a major contributor to their intermediary income during their business transformation. They are also seeing a rapid growth of China's asset management market.

At present, asset custody covers 11 types of assets, including banks' wealth management products, equity investment funds and pensions, said a recent report by the association.