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Official Warns Financial Holding Companies Are 'Blind Spot' in Regulation

Jin Penghui, head of the People’s Bank of China’s Shanghai branch, said that many financial holding companies have had
Jin Penghui, head of the People’s Bank of China’s Shanghai branch, said that many financial holding companies have had "no mechanism to isolate risks, were good at concealing risks and were constantly interfering in the operations of financial institutions." Photo: VCG

China needs to speed up efforts to tighten regulation of financial holding companies and make it clear who will take responsibility for overseeing these entities, a central bank official said during the country's annual “Two Sessions” legislative meetings.

Many different types of institutions with the characteristics of financial holding companies have emerged in China, but they have been something of a blind spot for regulators, Jin Penghui, the head of the People’s Bank of China’s Shanghai branch, said during a meeting of the economics group of the China People’s Political Consultative Conference, the legislature's advisory body, on Tuesday.

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