China is drafting new rules to rein in businesses offering multiple financial services after runaway growth in recent years has left regulators without a firm handle on their risks to the economy.
Officials at China’s central bank are preparing to roll out new rules to bring risk management and capital reserves requirements for certain financial firms in line with rules for commercial lenders, according to those familiar with the plans. The rules would apply to companies that are involved in activities that include two or more financial sectors, say the sources.
Various financial regulators in China have promulgated new measures further opening up the financial services industry to foreign investment, but those concessions come with new regulations to safeguard the China economy. Plans include regulating non-financial entities to invest into financial institutions and tightening up control over the conduct of and practices of banking activity by financial institutions.
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