trending Market Intelligence /marketintelligence/en/news-insights/trending/yd-_pexgdmk5qiz6w3lmcw2 content esgSubNav
In This List

Report: China to release rules on financial holding companies

Blog

Broadcast deal market recap 2021

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix

Blog

Using ESG Analysis to Support a Sustainable Future


Report: China to release rules on financial holding companies

Chinese regulators plan to introduce new rules for financial holding companies later in 2018, Caixin reported June 3, citing sources.

The People's Bank of China, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission are planning to establish a supervisory system for nonfinancial companies that invest in financial organizations, sources said.

Five companies have been selected for a pilot program, including China Merchants Group and Ant Financial Services Group.

Companies that have significant influence or control over subsidiaries in at least two of the three primary financial sectors, banking, insurance and securities, may have to apply for a financial holding company license in the future, sources told the publication.

Regulators are keen to establish a supervisory system for financial holding companies, particularly with the number of nonfinancial businesses that have entered the financial sector. Internet giants like Suning and Ant Financial's parent, Alibaba Group Holding Ltd., control a number of financial institutions. There are 28 private enterprises in the country that hold stakes in more than five financial institutions, according to data from Bai Hexiang, president of the Xi'an branch of the central bank.

These companies have flouted existing regulations that only allow limited stakes in financial companies. Companies like Tomorrow Holdings and Anbang Insurance Group Co. Ltd. have been able to make multiple investments in the financial sector due to lax rules on financial holding companies, the report said.