Previously, the People's Bank of China also accepted the applications for administrative licenses of China Everbright Group Corporation, Shenzhen Zhao Rong Investment Holdings Co., Ltd. and China Wanxiang Holdings Co., Ltd. to set up financial holding companies. Judging from the application of financial holding companies, there are backgrounds of central enterprises, local state-owned enterprises and private enterprises.
Fill in the shortcomings of the regulatory system and strengthen the overall supervision of financial holding companies.
China's integrated financial group began in 2002, and the State Council approved Everbright Group, CITIC Group and Ping An Group as pilot institutions of integrated financial holding group. Subsequently, the comprehensive financial group entered a period of rapid growth, and its establishment targets expanded from central enterprises and large state-owned groups to private enterprises and Internet enterprises.
The data shows that the number of enterprises with the words "financial holding" in their names has increased from 206 in 2005 to 3,576 in 20 16, and about 80% of them have registered capital of more than 5 million yuan, which is enough to reflect the rapid expansion and large business scale of such enterprises, and to some extent, they have realized resource integration and coordination. However, the blind expansion under the absence of supervision has also led to related party transactions, regulatory arbitrage and other risks, especially some private financial groups, which have accumulated a large number of potential risks due to chaos and frequent problems.
In order to strengthen the overall supervision of financial holding companies and speed up the shortcomings of the supervision system. On September 13, 2020, the State Council issued the Decision on Implementing Access Management for Financial Holding Companies (hereinafter referred to as the Access Decision), authorizing the People's Bank of China to implement market access management and organize supervision for financial holding companies. The People's Bank of China, together with relevant departments, extensively listened to the opinions of all parties and formulated the Measures for Financial Regulation.
After the promulgation of the Financial Control Measures, the central bank began to accept applications from financial holding companies from June 20021. At present, five companies have applied for the establishment of financial holding companies, which have been accepted by the central bank. They are CITIC Financial Holdings and Beijing Financial Holdings, which have been approved, and China Everbright Group Co., Ltd., Shenzhen Zhao Rong Investment Holdings Co., Ltd. and China Wanxiang Holdings Co., Ltd., which are still under acceptance.
According to public information, CITIC Financial Holdings is controlled by China CITIC Co., Ltd. 100%, and Beijing Financial Holdings is controlled by Beijing State-owned Capital Operation Management Co., Ltd. 100%.
Zheng Chenyang of China Banking Research Institute believes that the first batch of licenses for two financial holding companies were issued in less than one year, which fully reflects the importance attached by supervision to the standardized development of financial holding companies, further fills the shortcomings of financial supervision and helps to prevent systemic financial risks. The approved CITIC Financial Holdings and Beijing Financial Holdings are representatives of central enterprise groups and local financial control companies, respectively, with standardized operation and high credibility, and they are the first to be approved in a step-by-step and phased regulatory thinking.
To meet certain conditions, you need to apply for the establishment of a financial holding company.
It is compulsory to apply for the establishment of a financial holding company.
The Measures for Financial Holding stipulates that if the establishment of a financial holding company requires business scope and asset scale, and if it substantially controls two types of financial institutions and the asset scale meets the regulatory requirements, it shall establish a financial holding company.
According to the establishment mode of determining the proportion of financial assets to the total consolidated assets of the group, enterprises with financial assets accounting for 85% or more can choose two ways to apply. One is that the parent company sets up a financial control subsidiary, that is, the "small financial control" model; The other is that all the parent companies are converted into financial control companies, that is, the "big financial control" model. Financial assets accounting for less than 85% can only adopt the "small gold control" model.
Zheng Chenyang said that from the perspective of the two companies that have been approved, CITIC Group adopts the "small gold control" model and Beijing Financial Control adopts the "big gold control" model. Different establishment modes are related to their respective business characteristics and business structure. The non-financial business segment of CITIC Group contributes a lot to revenue and net profit, which will be about 50% in 2020. On the basis of preventing risk cross-infection, the "small gold control" model can better isolate and strengthen the industrial and financial fields. Beijing Financial Holdings mainly focuses on the financial sector, and has certain foundation and conditions to transform into a financial holding company as a whole. Incorporating all business segments into financial holding companies also meets strict financial regulatory requirements.
In order to prevent the equity structure from being complicated, the Measures for Financial Supervision also clearly stipulates the establishment of equity institutions. The Measures for Financial Holding requires that the shareholding structure of a financial holding company should be concise, clear and transparent, with a reasonable legal person level, which is suitable for its own capital scale, management ability and risk control level, and its holding institution shall not hold shares in reverse or cross-shareholding. In addition, a financial institution controlled by a financial holding company may no longer become a major shareholder of other types of financial institutions, unless the financial institution controls the same type of financial institution or the extension of its business and is recognized by the financial management department.
Enterprise groups that existed before the implementation of the Financial Management Measures, but whose shareholding structure does not meet the requirements, will reduce the complexity of organizational structure and simplify the legal person level during the transition period after being approved by the financial management department.
The first batch of financial control licenses were approved. Does Henan have the conditions to apply?
Judging from the background of the financial holding company currently applied for, it is relatively strong and involves a large scale of financial assets.
Judging from the conditions for the establishment of the Measures for Financial Holding, non-financial enterprises, natural persons and recognized legal persons should establish financial holding companies if they substantially control two or more different types of financial institutions and meet the requirements of the corresponding asset size.
Specific to Henan, is it in line with the application for the establishment of a financial holding company?
"Specific to the application for a financial holding platform, especially the application for the establishment of a local financial holding group, the applicant institutions in the region should have strong strength, hold shares in a number of financial institutions at the same time, and have substantial control capabilities. The development level of various financial institutions in Henan is not outstanding from the national perspective. It seems that the current enthusiasm for building a platform to integrate financial institutions in the region is not high. " The above-mentioned person said.
Zheng Chenyang said that obtaining the license of financial holding company means facing stricter supervision. Further improve the corporate governance mechanism, strengthen comprehensive risk management, innovate financial products and services under the premise of compliance, balance the relationship between finance and industry, build a first-class financial holding platform with international and domestic benchmarks, and enhance the ability to serve the real economy. At the same time, there may be new changes in the competition pattern of financial control industry, and financial control companies that do not meet the conditions for establishment need to be rectified in terms of equity transfer, business divestiture and company name change; Some private and internet financial holding companies with big problems and endangering the financial order may face a wave of withdrawal; The central bank said that it is steadily and orderly promoting other qualified enterprises to apply for financial holding companies. More qualified enterprises will actively apply for financial control licenses, learn from the experience of leading institutions, build a management framework, and standardize business operations.
Editor: Shi Jian Audit: Li Zhen Director: Wan