The new rules will blacklist certain individuals from becoming major or controlling shareholders in financial holding firmsBeijing — China is tightening rules and imposing capital demands on sprawling empires such as Ant Group and China Evergrande Group in its latest attempt to curb risks in the nation’s $49-trillion financial industry.
Companies that meet the criteria but are denied regulatory approval to set up financial holding entities must sell their stakes in the financial companies or give up control, according to the rules. Companies covered under the regulation will need at least ¥5bn in actual paid registered capital, and that should account for at least 50% of the combined registered capital of their controlled financial entities, according to the rules.Ant has emerged as a consumer lending leader in recent years with the help of an array of banks. The firm also operates payments systems, owns a stake in an online bank, and runs insurance and wealth management units.
At end-2016, about 70 central government-owned enterprises had a total of more than 150 financial subsidiaries. Another 28 private firms each had stakes in at least five financial units.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China likely to halt German pork imports due to case of African swine feverGermany, for which China is a key pork market, has confirmed a case of the disease that’s caused South Korea and Japan to suspend purchases
Source: BDliveSA - 🏆 12. / 63 Read more »
Rapper Saudi gets praise for giving his ancestors a shout-outMusic industry 'misfit' Saudi applauded for remembering his ancestors.
Source: TimesLIVE - 🏆 28. / 59 Read more »