Central Bank to Tighten Regulations to Control Leverage Levels

摘要

The Chinese central bank will tighten the regulations on large financial holding companies to control leverage levels and prevent systemic risks according to a statement recently made by the People’s Bank of China(PBOC).The bank has published a set of draft regulations and sought out public opinion.The draft defines financial holdings companies as those specializing in financial institutions’equity investment and management.They are forbidden from conducting non-financial business in order to prevent the spread of risks.