China Puts New Financial Holding Companies in Systemic Risk Management

What’s new: China’s central bank will include newly approved financial holding companies (FHCs) in its macroprudential management framework to better manage risks in the financial system, a senior official said.

The central bank is reviewing three companies’ applications to operate as FHCs, said Li Bin, head of the Macroprudential Policy Bureau of the People’s Bank of China. The bank approved the first two FHCs in March.