China's banking regulator has introduced new measures to increase scrutiny on investments in commercial lenders and tighten regulation on the entrusted loans market, a rapidly growing segment of the country's shadow banking.

The China Banking Regulatory Commission (CBRC) published regulations on its website late on Friday that put limits on the number of commercial banks that single investors can have major holdings in. The rules are aimed at tackling “disorder” in the banking sector, including the abuse of rights by major shareholders and the prevalence of “invisible shareholders”.

And in separate measures announced on Saturday, the CBRC said it would require firms to step up their risk management and disclosure around entrusted loans, a form of business-to-business financing.

Under the new commercial lender shareholding regulations, a single investor can hold 5 percent or more, considered a major shareholding, of no more than two commercial banks, or a controlling stake of no more than one lender.