According to reports, the China Securities Association is currently seeking industry opinions on the "Guidelines for the Consolidation Management of Securities Companies (Trial)". The purpose of the draft is to strengthen the risk management capabilities of securities company groups, maintain the stable running of securities companies, and prevent the cross-border and cross-industry transmission of financial risks. The new regulations clearly require risk isolation, establishing and continuously improving an internal firewall system within the securities group to effectively prevent chaotic transmission of financial risks within the group and cross-border, cross-industry, cross-institution, and cross-product contagion. Additionally, securities companies should conduct consolidation management of internal transactions within the securities group, fully paying attention to potential benefits transfer, inflated capital, income transfer, risk contagion, regulatory arbitrage, and other negative impacts that may affect the stable operation of the securities group. Internal transactions of the securities group include, but are not limited to, financial market transactions and derivative transactions between securities companies and their subsidiaries, borrowing of funds (loans, finance and securities lending, repurchase, etc.), on-balance-sheet and off-balance-sheet credit (loans, interbank, guarantees, etc.), cross-shareholding, asset transfers, etc. (Cailian Press)