China financial regulator issues draft rules on consumer finance companies management

BEIJING (Reuters) – China’s financial regulator on Monday issued draft rules on the management of consumer finance companies.

The proposed rules include raising the minimum shareholding requirement for major investors of consumer finance companies to 50% from 30% earlier, according to a document from China’s National Administration of Financial Regulation

The rules also require the companies to have a leverage ratio not lower than 4% to restrict “blind expansion”, the regulator said.

(Reporting by Beijing Newsroom)