China Issues New Rules To Tighten Control Over Financial Holding Firms

To be licensed as financial holding firms, companies must have at least 5 billion yuan ($731.74 million) in capital, according to the rules.

The rules also set requirements in total assets that financial holding firms can manage. Companies that hold banking assets will need to have at least 500 billion yuan in total assets, and those that do not hold banking assets should have at least 100 billion yuan in assets.

In 2018, the central bank put five financial holding companies, including fintech giant Ant Financial, retail conglomerate Suning.com and state-owned China Merchants Group, in a pilot scheme to test their ability to manage risks.

Jack Ma’s Ant Financial, now renamed Ant Group, is seeking dual listings in Hong Kong and Shanghai.