The People’s Bank of China (PBoC), China’s central bank, has released draft measures to tighten the oversight of financial holdings companies, as Beijing continues its efforts to prevent financial risks, said the Wall Street Journal.
Regulators will carry out “comprehensive and continuous” supervision of some nonfinancial companies have engaged in “blind expansion” into the financial sector, leading to mounting risks, the People’s Bank of China said, including their governance, capital and leverage ratios as well as related-party transactions.
The gist of those rules was reflected in an annual financial-stability report released late last year.
After a decade of rapid growth, some nonfinancial Chinese firms, including HNA Group Co. and Anbang Insurance Group Co., have been pressured by the authorities to scale back their expansion. The central bank will seek public comments on the draft measures until Aug. 24.