BEIJING (Reuters) – China is testing new regulations on five financial holding companies, including e-commerce giant Alibaba’s fintech affiliate Ant Financial Service [ANTFIN.UL], paving the way for tighter oversight of the fast-growing sector.
The pilot scheme, designed to rein in debt risks among financial holding companies, also included retail conglomerate Suning.com and large state-owned companies such as China Merchants Group, Shanghai International Group, and Beijing Financial Holdings Group, state news agency Xinhua reported late on Friday.
Trial - People - Bank - China - PBOC
Based on the trial, the People’s Bank of China (PBOC) aims to roll out a supervision plan for the broader sector as soon as in the first half of 2019, Xinhua said.
Zhou Xuedong, director of the PBOC’s Financial Stability Bureau, said some financial holding companies had grown through “barbaric” expansion and a regulatory void needed to be filled urgently.
Volume - Businesses - Association - Risks
“They are large in volume with complex businesses and high association risks,...
Wake Up To Breaking News!
A pox on both their houses!