CSRC issues regs to control subsidiaries' risks

China's securities regulator released two regulations that will standardize the businesses and control risks of the subsidiaries of fund management companies .

"The regulations will significantly improve risk control of the subsidiaries of fund management companies. Net capital will be a key risk control index," said Deng Ge, a spokesman of the China Securities Regulatory Commission at a news conference on Friday.

The draft regulation states that the net capital of a subsidiary of a fund management company should be no smaller than 100 million yuan ($14.5 million). The net capital should also be no less than 40 percent of a subsidiary's net assets and no less than 20 percent of its liabilities.