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FINANCE

Party’s Over for China’s Financial Holding Companies

The central bank has been tightening controls over some financial holding companies that have been able to profit from a regulatory vacuum and sell innovative new products that could pose risks to the stability of the financial system. Photo: Ma Minhui/Caixin
The central bank has been tightening controls over some financial holding companies that have been able to profit from a regulatory vacuum and sell innovative new products that could pose risks to the stability of the financial system. Photo: Ma Minhui/Caixin

China’s powerful financial holding companies and conglomerates are set to become the next target of the country’s regulators as the government steps up efforts to control financial risks in the world’s second-largest economy.

Although details of the crackdown have yet to be officially released, the latest quarterly monetary policy report from the People’s Bank of China (PBOC) provides an insight into the controls likely to be imposed on these companies. Financial holding companies include both private players such as Ping An Insurance and Anbang Insurance Group and state-owned groups such as China Citic Group and China Everbright Group.

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