China issues draft rules to regulate financial holding companies’ related transactions

SHANGHAI (Reuters) – China’s central bank issued draft rules on Tuesday to regulate related transactions of financial holding companies.

Such transactions must conform to rational commercial principles, be backed by genuine businesses and be priced fairly, the People’s Bank of China said in a statement.

In addition, the transactions should be transparent, according to the draft rules.

(Reporting by Shanghai newsroom; Editing by Kirsten Donovan)