The first private financial holding license falls to Wanxiang Holding Central Bank officially accepted the application. What other financial holding companies are worth looking forward to?

2022-07-22 0 By

Chinatimes.net.cn reporter Liu Jia in Beijing reports that the third batch of applications for the establishment of financial holding companies has been announced.On January 30, the People’s Bank of China (PBOC) announced on its website that it had accepted applications from Shenzhen Zhaofinance and Investment Holding Co LTD (HEREINAFTER referred to as zhaofinance and Investment Holding Co LTD) and China Wanxiang Holding Co LTD (hereinafter referred to as Wanxiang Holding Co LTD) to establish financial holding companies.The announcement shows that the initiator or major shareholder of Zhaorong Investment Holdings and its shares are: China Merchants Shipping Co., LTD., holding 100% of the shares.The sponsors or major shareholders of Wanxiang Holding and their shares are: Lu Weiling, holding 74.57%;Shanghai Guanding Ze Co., LTD., holding 20%;Xiao Feng, holding 5%.So far, 5 companies have applied for the establishment of financial holding companies.China Citic Co LTD, China Everbright Group Co LTD and Beijing Financial Holding Group Co LTD have been accepted.”It is worth noting that wanxiang Holdings, the first private financial holding company to be accepted, also has 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 in a standardized manner has not changed.”Zhaolian finance chief researcher Dong Ximiao to “China Times” reporter analysis said.The first private financial holding company was accepted public information shows that Wanxiang Holding was established in Shanghai on March 19, 2007, with the legal representative Lu Weiling. The company’s main business scope is industrial investment, investment management, technical consulting, technology development, technology transfer and technical services in the field of financial professional technology.In the form of service outsourcing, engaged in banks and other financial institutions background business technical services, financial consulting, etc.Wanxiang currently has four shareholders, including 74.57 percent held by Lu Weiling, 20 percent held by Shanghai Guanding Ze Co., LTD., held by Lu Weiling and his son Lu Zep, 5 percent held by Xiao Feng, and 0.43 percent held by Xu Anliang.As one of the top companies of “Wanxiang System” of large private enterprises in Zhejiang, Wanxiang Holding has formed a business pattern with Minsheng Life Insurance as the main operating body of financial investment business and Wanxiang Trust, Wanxiang Leasing and Tonghui Futures as the main operating body of other financial business.Lu Weiding, who was born in 1971, is the son of Zhejiang’s famous entrepreneur Lu Guanqiu and the head of Wanxiang Group.Wanxiang holding behind the “universal” by Mr Lu founded in 1969, already developed now become covers auto parts, clean energy, modern agriculture and other areas of multinational enterprise group, which owns universal money-is-coming, chengde, lulu, universal, agriculture, shunfa hengye and other four a-share listed companies and stock listed company A123 systems inc.,In addition, the company invested and participated in 14 A-share listed companies, including Huayi Brothers and GAC Group.According to the announcement of the Central Bank, there are three main shareholders of Wanxiang Holding company as the initiator of the financial holding company. Lu Weiling holds 74.57% of the shares, accounting for a relatively high proportion of individual shareholders.Shanghai Guanding Ze Co., Ltd. owns 20%;Mr. Xiao has a 5% stake.In the annual work meeting wanxiang group, LuWeiDing emphasized in 2022 to do is “justify set points, check, and line, keep positive innovation, continue to listen to the party, go with the party, carry forward, practice Mr Lu spirit, a spirit of labor model, play master consciousness, long-term grasp the future development trend, the universal people in the same rhythm,Focusing on the mission of ‘fresher air’, the company focuses on the main battlefield of Wanxiang Innovation Energy Gathering City, industrial synchronization, science and technology first, fighting and winning, making contributions to the society and becoming a great company.”We will build an innovation and energy cluster city, attracting scientists and entrepreneurs from all over the world, facilitating technological breakthroughs, leading high-quality development, and seizing the commanding heights of future industrial science and technology.”Lu Weiding said recently.The so-called financial holding company refers to a limited liability company or joint-stock company that is established according to law and has substantial control over two or more different types of financial institutions. It only conducts equity investment management and does not directly engage in commercial business activities.Since the Decision of The State Council on implementing the Access Management of Financial Holding Companies and the Financial Control Measures were released in September 2020 and officially implemented on November 1, the gap that China had not incorporated financial holding companies into the supervision as a whole has been filled.The People’s Bank of China (PBOC) has implemented market access management for financial holding companies in accordance with the Access Decision and the Financial Control Measures, a pboc official said when answering reporters’ questions on the financial Control Measures.The main considerations are as follows: First, financial holding companies tend to be large in scale, diversified in business, and highly correlated, and operate across institutions, markets, industries, and regions, which are related to national financial security and social and public interests and need to be regulated by market access.Second, the establishment of clear administrative licensing is an important link in the legal supervision of financial holding companies, which is conducive to comprehensively promoting financial holding companies to operate in accordance with the law and prevent cross-infection of risks.Third, it embodies the regulatory concept that the financial industry is a franchise industry and access according to law, and also conforms to the prevailing practices of major countries and regions.On the same day, Zhaorong Investment Holdings’ application for establishing a financial holding company was also accepted by the Central bank, and it is 100% owned by China Merchants Shipping Co., LTD.Zhaorong Investment Holding co., Ltd. was established in May 1997 in Shenzhen city. The business scope of the company includes investment and industrial development (specific projects will be declared separately).Domestic commerce, material supply and marketing industry (excluding franchise, exclusive control, exclusive goods), etc.At present, Zhaorong Investment Holdings wholly owns China Merchants Fintech Co., LTD., Shenzhen Yanqing Investment And Development Co., LTD., Shenzhen Zhaorong Industrial Investment Holding Co., LTD., and Shenzhen Zhaorong Industrial Investment Holding Co., LTD., according to Tianyan inspection.Shenzhen Merchants Ping an Asset Management Co., LTD and Shenzhen Yintong Qianhai Financial Asset Trading Center Co., LTD.In addition, Zhaorong Investment Holding also holds 50% equity of China Merchants Capital Investment Co., LTD and 50% equity of Shenzhen Chuyuan Investment Development Co., LTD respectively.It holds 40 per cent of China Merchants Finance Leasing Co., 33.33 per cent of China Merchants Renhe Life Insurance Co., 23.55 per cent of China Merchants Securities and 4.55 per cent of China Merchants Bank.This time, Zhaorong Investment Holding is initiated by China Merchants Shipping Co., LTD., with 100% shareholding.As the application of the Financial Holding company is accepted, it is expected that the relevant supporting details will be released in succession.For the next step regulation thinking analysis, everbright securities research institute banking chief analyst Wang Yifeng has said the regulation will continue to take prudent macro management and micro prudential regulation way of combining, in accordance with the principle of substance over form, on the basis of the regulation and table, on the financial holding company to conduct a comprehensive, sustained, through regulation, establish overall supervision mechanism.”This is mainly reflected in the following aspects: First, the implementation of supporting rules such as consolidated forms and affiliated transactions;Second, to advance the approval of financial control licenses in an orderly manner, and steadily promote the rectification of stock;The third is to strengthen the overall risk control of THE Group and improve the ‘firewall’ system.”Wang Yifeng said.In the recently released by the central bank and safe pitch in financial work in 2022, the central bank proposed to further improve the macro-prudential policy framework and governance mechanism, to carry out the macro-prudential pressure test, the key work mainly include systemic risk monitoring and evaluation, gold control and continuous supervision of examination and approval of the company, as well as systemically important bank additional regulation, etc.Lead editor: Meng Junlian Editor: Ran Xuedong