Rules on financial holding firms in pipeline

China's financial regulators are mulling new rules to regulate the nation's financial holding companies to curb risks originating from their risky and opaque operations.

The drafting of the new rules is being led by the People's Bank of China, the central bank, and the new regulation will likely require financial holding companies to obtain necessary licenses issued by the PBOC to conduct business, according to media reports citing people close to the regulators.

The new rules, which could be issued and implemented this year, will strengthen the regulation and supervision of financial holding companies' capital authenticity and adequacy, shareholding structure, corporate governance and their connection with subsidiaries, according to the reports.