China issues new rules to tighten control over financial holding firms

New rules apply to firms with a banking operation & financial assets of over $73 bn

China issued new rules on Sunday to regulate financial holding companies, in its latest move to prevent systematic risks to the nation's vast financial sector.
 

The new rules were set to stem loopholes in supervision and regulation systems, as a small number of companies expanded blindly into the financial sector without isolation mechanisms and while accumulating risks, the central bank People's Bank of China (PBOC) said in a statement.
 

The new regulations will require licenses for non-financial companies that do business across at least two financial sectors, and which are designated as “financial holding companies,” the State Council said Sunday