New progress was made in the establishment of financial holding companies.
On January 30, the people’s Bank of China issued the announcement on accepting the application of China Wanxiang Holding Co., Ltd. and Shenzhen Zhaorong Investment Holding Co., Ltd. to establish a financial holding company.
Among them, the sponsors or major shareholders and shares of the financial holding company applied for establishment by China Wanxiang Holding Co., Ltd. are: Lu weiding holds 74.57%, Shanghai guandingze Co., Ltd. holds 20% and Xiao Feng holds 5%. For the financial holding company applied to be established by Shenzhen Zhaorong Investment Holding Co., Ltd., the sponsors or major shareholders and their shares are: China Merchants Shipping Co., Ltd. holds 100%
source: People’s Bank of China
Lu Guanqiu’s son appears
Previously, the people’s Bank of China has accepted the application of CITIC Group, Everbright Group and Beijing Financial Holding Group to establish a financial holding company. This time, the people’s Bank of China accepted the application of China Wanxiang Holding Co., Ltd. and Shenzhen Zhaorong Investment Holding Co., Ltd. to establish a financial holding company.
Dong ximiao, chief researcher of Zhaolian finance, said that in terms of types, CITIC, Everbright and Zhaorong initiated the establishment of large central enterprises or financial institutions, Beijing financial holding is a local financial holding, and Wanxiang holding is a private financial holding. In particular, Wanxiang financial holding is the first private financial holding company accepted, and there are also a large proportion of individual shareholders, which shows that the principle and direction of supporting the development of private economy and private enterprises and guiding private capital to enter the financial industry have not changed.
“At present, the approval of financial holding companies has stepped into normalization, and financial holding companies will usher in a new stage of licensed operation. In the future, more applications for the establishment of financial holding companies will be accepted and approved.” Dong ximiao said.
Tianyancha information shows that China Wanxiang Holding Co., Ltd. is engaged in long-term strategic investment, involving finance, energy, agriculture, mining, chemical industry, equipment manufacturing and other industries.
Lu weiding is the son of Lu Guanqiu, the founder of Wanxiang Group. At present, he is the legal representative of Minsheng Life Insurance Co., Ltd., Puxing Juneng Co., Ltd., Wanxiang Group Co., Ltd., Shanghai guandingze Co., Ltd
Image Source: tianyancha (incomplete table)
Another announcement of the people’s Bank of China shows that the sponsors or major shareholders and shares of the financial holding company applied for by Shenzhen Zhaorong Investment Holding Co., Ltd. are: China Merchants Shipping Co., Ltd. holds 100%
Image Source: tianyancha
Tianyan survey shows that the foreign investment of Shenzhen Zhaorong Investment Holding Co., Ltd. involves the financial industry, leasing and business service industry
Image Source: tianyancha
China Everbright Bank Company Limited Co.Ltd(601818) Zhou Maohua, a macro researcher of the financial market department, said: “some institutions with strong strength and standardized operation can help reduce operating costs, give play to resource synergy and improve the ability of finance to serve the real economy through the financial holding mode.”
avoid local regulatory vacuum
In recent years, financial holding companies have developed rapidly. Some large financial institutions have carried out comprehensive operations, obtained multiple financial licenses and formed financial groups. Some non-financial enterprises also hold a number of various financial institutions and become de facto financial holding companies.
Dong ximiao said that financial holding companies are the product of the deep integration of industrial capital and financial capital. On the whole, they can better achieve economies of scale and economies of scope. The diversified business structure of financial holding companies also helps to better resist risks.
On September 13, 2020, the decision on implementing the access management of financial holding companies and the Trial Measures for the supervision and administration of financial holding companies (hereinafter referred to as the access decision and the financial holding measures) were published on the same day. The two documents clarify the key links of the financial holding company, such as the access threshold, shareholder qualification conditions, capital source and application, capital adequacy requirements, equity structure and so on. According to the access decision and financial holding measures, the people’s Bank of China implements market access management for financial holding companies.
Zhou Maohua said that the regulatory authorities strictly control access and approve one when it is mature, which is to avoid local regulatory vacuum, promote the standardized and stable operation of financial institutions and prevent potential financial risks from the source.
In addition, some market participants said that the establishment of financial holding companies can optimize the allocation of resources, give play to synergies, enrich financial services and meet the diversified needs of various customers. At the same time, it helps to improve business robustness, consumer stickiness and market competitiveness.
