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PBOC consults on rules on financial holding companies—report

China’s central bank has started seeking internal feedback on draft rules regulating financial holding companies, targeting big-name conglomerates that hold multiple financial licenses, according to Reuters citing sources with direct knowledge of the matter.

Financial holding conglomerates subject to the rules will not only face new requirements on capital adequacy, but may also be forced to restructure and put part of their non-financial assets in a separate entity, according to the report.

To separate risk, the draft rules seek the creation of “firewall” between different units in one financial holding company, they said.

Presently China does not . . .

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