<div>UPDATE 2-China gives big distressed debt managers nod to make M&A plans for troubled smaller banks - sources</div> <!-- no image --> <div>* Regulators told largest asset managers to prepare plans to take-over or invest in high-risk banks<div class="feedflare"> <a href="http://feeds.reuters.com/~ff/reuters/UKBankingFinancial?a=6eJoBa8XdzI:0mUn8CQ1gBM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/reuters/UKBankingFinancial?d=yIl2AUoC8zA" border="0"></a> <a href="http://feeds.reuters.com/~ff/reuters/UKBankingFinancial?a=6eJoBa8XdzI:0mUn8CQ1gBM:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/reuters/UKBankingFinancial?i=6eJoBa8XdzI:0mUn8CQ1gBM:V_sGLiPBpWU" border="0"></a> <a href="http://feeds.reuters.com/~ff/reuters/UKBankingFinancial?a=6eJoBa8XdzI:0mUn8CQ1gBM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/reuters/UKBankingFinancial?i=6eJoBa8XdzI:0mUn8CQ1gBM:F7zBnMyn0Lo" border="0"></a> </div><img src="http://feeds.feedburner.com/~r/reuters/UKBankingFinancial/~4/6eJoBa8XdzI" height="1" width="1" alt=""></div> Posted by Reuters