China’s central bank and financial regulators have issued guidelines to strengthen supervision on non-financial companies investing in financial institutions.
China will strictly restrict irrational and blind investment in financial institutions, according to the guidelines issued by the People’s Bank of China and the country’s banking, insurance and securities regulators.
State-owned firms must report their investment in financial institutions to the Communist Party Central Committee and State Council, the guidelines stated.
Non-financial firms cannot borrow funds to invest in financial institutions and controlling shareholders of financial institution must meet certain requirements on profits and asset ratio, the guidelines stated.
(Reporting by China monitoring team and Kevin Yao Editing by Jacqueline Wong)
Topics China
Was this article valuable?
Here are more articles you may enjoy.
Private Credit Investors Clash Over £36 Billion BHP Dam Collapse Litigation 
25 Years Later: IJ’s Past and Continued Coverage of the Insurance Impact of 9/11 
Amazon Seen as Shielded From Liability for Miami Cargo Plane Crash 
Seven Charged in $100 Million Workers’ Comp Fraud in Florida 
