People’s Bank of China Publishes Trial Regulatory Measures on Financial Holding Companies
On July 26th, the People’s Bank of China (PBC) published the Trial Measures on Supervision and Regulation of Financial Holding Companies (Exposure Draft) (hereinafter referred to as the Measures) and sought for feedback through a public consultation.
As stated in the Measures, (Source: PBC)
“Where non-financial enterprises and natural persons meet the requirements provided in Article 6 of the Measures, they shall apply to the PBC for the establishment of financial holding companies (FHCs) or recognition of conglomerates’ parent companies as FHCs. ”
“In particular, for those that have met the requirements before the implementation of the Measures, applications shall be submitted to the PBC within six months after the Measures takes effect. For those that are scheduled to have de facto control of two or more financial institutions of different types after the Measures takes effect and come under circumstances stipulated in Article 6 of the Measures, applications shall be submitted to the PBC as well. Relevant implementation rules will be formulated separately.”
“Where institutions which meet the requirements of establishing FHCs do not submit applications to the PBC in accordance with the Measures or fail to get approved after applications, the PBC can work together with relevant financial regulators to order them to make rectifications; where rectifications are not made within the given time limit, authorities shall order them to transfer all their equities of the financial institutions. Institutions cannot be registered as FHCs without the PBC’s approval, nor can they use the words or phrases like “financial holding (金控/金融控股)” or “financial group (金融集团)” for their names. ”
CSRC Issues “Regulations on Representative Offices of Overseas Securities and Futures Exchanges in China”
On July 25th, China Securities Regulatory Commission (CSRC) issued “Regulations on Representative Offices of Overseas Securities and Futures Exchanges in China” (hereinafter referred to as “Regulations”). According to the document:
- a representative office should file a record to the local CSRC agency within 5 working days after its registration;
- a representative office is only authorized to conduct non-profit activities such as liaison, research and market introduction. Market introduction refers to training, conference or seminar held by the representative offices for enterprises and institutions. The office should make a brief report to local CSRC agency within 5 working days after the event;
- none of the staff members of the office shall be allowed to enter into agreements or contracts that may bring revenue or involve for-profit activities with any legal person or natural person.
At present, the Chinese government still adheres to tight regulation towards the online lending industry. More and more platforms are expanding to other Fintech fields for a more diversified and global development.
Online brokerages have become one of the choices. For example, several online lending platforms have acquired brokerage licenses in Hong Kong, and are planning to attract investors for their overseas stock market products through the technology-enabled and commission-free platform. The document issued last week shall fill the regulatory gaps for online brokerages mentioned above. (Source: WDZJ)
Challenger Bank MYbank is Looking to Raise 6 Billion Yuan
People familiar with the matter said that the Challenger Bank MYbank is seeking to raise its capital fund from 4 billion yuan to 10 billion yuan, making it the first capital-raise after its establishment four years ago.
Existing shareholders, including Ant Financial and Fosun International, are reported to participate in this round of investment.
According to MYbank, this financing will help the bank enhance its capital strength and support its SME lending business.
At present, the financing plan is still waiting for approval by the regulatory authorities.
Previously, Ant Financial held 30% of the shares of MYbank, making it the bank’s largest shareholder; Fosun International, which holds 25% of the shares, is the second-largest shareholder. (Source: iyiou)
Shanghai Stock Exchange Collaborates with Ant Financial and Alibaba Cloud on Regtech 3.0
This week, the Shanghai Stock Exchange Technology Co., Ltd. signed a Regtech strategic cooperation agreement with Ant Financial and Alibaba Cloud. The three parties will cooperate to build a regulatory technology platform, making real-time risk scan, analysis and handling by big data and intelligent algorithms. The agreement is signed to better support for investor protection in the era of regtech 3.0. (Source: ifeng)
The above is a weekly synopsis of the biggest stories on Fintech in China provided by WeiyangX, part of Tsinghua University, in partnership with Crowdfund Insider.
WeiyangX is the most influential website focusing on Fintech in China. The site covers the latest news, industry data analysis, business practices, and in-depth fintech cases in fintech. WeiyangX is incubated by Fintech Lab. Founded by Tsinghua University’s People’s Bank of China (PBC) School of Finance in 2012, the Fintech Lab is the first and leading research entity dedicated to leading best practices, promoting interdisciplinary innovation, and encouraging entrepreneurship in the field of fintech through scientific research and innovative project incubation.