What’s new: The central bank is reviewing an application to set up a financial holding company submitted by state-owned Beijing Financial Holdings Group Co. Ltd., according to a Tuesday statement (link in Chinese).
The context: This is the third company to have such an application reviewed since the People’s Bank of China (PBOC) issued a new set of relevant rules last year. Earlier this year, the PBOC started reviewing such applications from Citic Corp. Ltd., and China Everbright Group Ltd.
The PBOC has yet to grant anyone such a license yet.
The new rules aim to better regulate nonfinancial companies’ activities in various areas of the finance industry, following scandals involving HNA Group Co. Ltd., and Tomorrow Holding Co. Ltd. Under the rules, certain companies outside the finance industry that own financial institutions in at least two different sectors are required to set up, or turn themselves into, financial holding companies subject to supervision of financial regulators.
Details: Founded in 2018, Beijing Financial Holdings Group owns stakes in various financial companies including banks, fintech firms and asset managers, according to its official website. It is wholly owned by the Beijing city government.
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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