China asks trust firms to clean up non-finance units and businesses

July 30, 2021 12:26 AM EDT

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BEIJING (Reuters) - China's banking and insurance regulator issued rules on Friday requiring the country's trust firms to clean up their non-finance subsidiaries and businesses.

The rules, aimed at curbing financial risks, also require trusts to stop setting up new non-finance units and making new investments in offshore companies, according to a statement from the China Banking and Insurance Regulatory Commission (CIRC).

Trust firms will have a grace period of three years to comply with the rules, according to the statement.

(Reporting by Cheng Leng and Ryan Woo; Editing by Christian Schmollinger)

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