China news - Rules for financial holding companies expected to be issued this year
Source: Asia Insurance Review | Jan 2019
China’s central bank is seeking to finalise and implement the long awaited rules governing financial holding companies early this year, reported Reuters citing two sources with direct knowledge of the matter.
The rules, being finalised by the People’s Bank of China, target big-name conglomerates that hold multiple financial licences, including insurance licences. The groups are expected to face new requirements on capital adequacy, and may also be forced to restructure and put part of their non-financial assets in a separate entity.
At present, China does not have any specific rules regulating financial holding companies. The new regulations will be a major step toward curbing systemic financial risks by addressing opaque crossholding structures and reining in financial holding companies’ aggressive operations across different sectors. A
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