China tightens rules on banks' shareholders and entrusted loans

Beijing

CHINA'S banking regulator has introduced new measures to increase scrutiny on investments in commercial lenders and tighten regulation on the entrusted loans market, a rapidly growing segment of the country's shadow banking.

The China Banking Regulatory Commission (CBRC) published regulations on its website late on Friday that put limits on the number of commercial banks that single investors can have major holdings in. The rules are aimed at tackling "disorder" in the banking sector, including the abuse of rights by major shareholders and the prevalence of "invisible shareholders".