Shanghai on Monday banned close family members of senior officials from running business.
According to the regulation issued by the party committee of Shanghai, spouses of the city's leading officials are not allowed to run company or do business, nor can their children or the spouses of their children do business in the city.
The bans also apply to senior officials including heads of city departments, district and county governments, courts, procuratorates, the public security bureau and state-owned companies.
These officials must hand in reports on the jobs of their spouses and children, and publicize such information inside the party, the regulation said, threatening punishment for those who fail to do so.
Those whose families are already engaged in business must ask them to quit or resign themselves.
China has been making efforts to institutionalize its anti-graft drive. In March, top legislator Zhang Dejiang said the country was planning national legislation to fight corruption.
The law is expected to set clear codes of conduct for Chinese officials to prevent them from being corrupt. Legal experts say Shanghai's regulation may be a stepping stone for such bans nationwide.
