Spouses and children of senior government officials in Shanghai have been prohibited from setting up companies in the city.

The move - the latest salvo in the campaign against corruption - is aimed at eradicating nepotism.

Under a new regulation that took effect on Friday, spouses of officials at city level are not allowed to register companies. Their children and their "children-in-law" are also barred from registering companies in Shanghai.

The regulation was issued by the Party committee in Shanghai and the municipal government.

All Party organs, people's congresses at all levels, government organizations, judicial bodies and other State-run departments in the city have been warned to follow the regulation strictly.

Spouses of deputy secretaries on the city Party committee and in the city government, of officials at bureau level and of officials in charge of State-run entities are also banned from setting up firms.

Their children and their children-in-law are not allowed to set up firms in the city with business relating to the sector where the officials serve or which may conflict with the public interest.

The same restrictions apply to the spouses, children and children-in-law of top leaders at judicial bodies as well as senior executives at State-owned enterprises in Shanghai.