BEIJING/SHANGHAI (Reuters) -China’s central bank said on Thursday that it approved the establishment of two financial holding companies in a move to enhance regulations and prevent contagion risks in the financial sector.
The People’s of Bank (PBOC) approved the establishment of China CITIC Financial Holdings and Beijing municipal government-owned Beijing Financial Holdings Group, it said in a statement.
It is the first batch of financial holding firms approved by the PBOC since it officially issued rules in 2020 to regulate the country’s vast and often complex financial holdings companies.
The PBOC said it would encourage other companies to apply and set up financial holding companies in an orderly way and conduct a thorough, consistent and transparent regulating over those companies.
Last year, it said it received applications from three state-owned firms including CITIC Group, Beijing Financial Holdings Group and China Everbright Group.[nL2N
Billionaire Jack Ma’s Ant Group has also embarked on a regulatory-driven restructuring plan that would see it become a financial holding company since regulators derailed its record $37 billion IPO.
(Reporting by Zhang Yan, and Ryan WooEditing by Raissa Kasolowsky and Kim Coghill)
