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 the central bank are preparing to roll out rules to bring risk-management and capital-reserves requirements for these companies in line with those for commercial lenders, according to people familiar with the situation. The rules would apply to firms that have waded into two or more financial sectors, said the people,...
The China government is drafting new rules to bring risk management and capital reserve requirements in line with commercial lenders, marking a further tightening of Beijing's financial sector after a surge in growth meant regulators did not have a firm grip on the potential risks to the economy. These new regulations would apply to companies which have moved into two or more financial sectors such as the financial arms of Alibaba, Tencent and JD.com, as well as Ping An Insurance, Citic Group an Beijing Everbright Group.