The People's Bank of China unveiled a new set of rules on Thursday to better regulate related-party transactions of financial holding companies as part of the central bank's efforts to strengthen financial risk prevention.

The implementation of the new rule will help avoid improper transfer of interest, risk contagion and regulatory arbitrage, conducive to strengthening the country's macroprudential policy framework, the PBOC said in a statement on Thursday.

Accountable for managing related-party transactions of the financial holding group they belong to, financial holding companies should set upper limits for such transactions, according to the new rule.

Financial holding companies are also required to establish and perfect relevant rules regarding the management, reporting and disclosure of related-party transactions while improving the pricing of such transactions.

The PBOC will strengthen cooperation with related authorities to ensure the new rule is well implemented and will promote a healthy, orderly development of financial holding groups, the central bank said in the statement.