(Economic Observer) China Financial Holding Company will usher in the "new regulatory era"
China News Service, Beijing, October 24th (Reporter Wei Xi) Financial holding companies have always been regarded as the existence of "the most important weapon of the country" in the world.
Seven days later, China Financial Holding Corporation will usher in a "new regulatory era."
In September this year, the "Decision of the State Council on Implementing the Access Management of Financial Holding Companies" and the "Trial Measures for the Supervision and Management of Financial Holding Companies" were issued one after another and will be implemented on November 1.
Pan Gongsheng, deputy governor of the People’s Bank of China and director of the State Administration of Foreign Exchange, stated at the “Everbright-Guanghua Financial Holding Forum” held in Beijing on the 24th that for a long time, China has not included financial holding companies as a whole. With the expansion of the financial industry, the shareholding structure and organizational structure are complex, and there are even outstanding problems such as cross-shareholding, false capital injection, and huge capital extraction.
With the advent of November 1, China will initially establish a regulatory framework for financial holding companies, and clarify that financial holding companies formed by non-financial companies investing in holding financial institutions will enter and accept supervision in accordance with the law.
Pan Gongsheng emphasized that the key points of the regulation include the following aspects: shareholder qualifications and sources of capital, requiring the source of investment funds to be true and legal, and clarifying capital adequacy requirements; clarifying the equity management system to achieve a simple, clear and penetrable equity structure for financial holding companies; Improve corporate governance and related party transaction supervision, standardize related party transactions; establish a unified and comprehensive risk management system, and improve the risk "firewall" system.
So, how do financial holding companies represented by CITIC and China Everbright see the arrival of the "new regulatory era"?
Zhu Hexin, Secretary of the Party Committee and Chairman of CITIC Group, who attended the same forum on the same day, said that the continuous improvement of financial control supervision will improve the comprehensive financial service level of financial control companies, achieve high-quality development of the financial industry, and help the new development pattern of "double cycle".
Zhu Hexin said that by promoting the coordinated development of financial institutions within the system, the financial holding company will help increase the supply of effective financial services and better meet the financial needs of the real economy at different stages of transformation and development.
He suggested that while continuously improving financial control supervision, it is necessary to fully encourage and promote the high-quality development of financial holding companies, and under the premise of risk isolation, give full play to the comprehensive financial advantages and continue to improve the level of financial services to the real economy.
Li Xiaopeng, Secretary of the Party Committee and Chairman of China Everbright Group, believes that it is of great significance to regulate and develop financial holding companies, which are mainly reflected in four aspects:
First, add new impetus to the new development pattern.
Regulating the development of financial holding companies is conducive to enriching the financial ecology and promoting the construction of a modern financial system; it is conducive to improving the comprehensive service capabilities of financial enterprises and serving the real economy with higher efficiency; it is conducive to improving the anti-risk ability of the financial system and preventing and dissolving systemic risks .
Second, provide new weapons for financial supervision.
In the past, individual companies expanded disorderly and set foot in finance, and risks continued to accumulate.
The introduction of financial control measures and other measures to fill up the regulatory gap, clarify standards on key issues such as market access, shareholder qualifications, and capital sources; on the basis of consolidation, introduce new concepts and hard measures that are comprehensive, continuous and penetrating supervision; passed Implementing regulatory responsibilities and regulatory procedures, and launching comprehensive and multi-angle joint supervision, effectively avoiding regulatory blind spots, and providing a powerful weapon for the entire chain of financial risk management and control.
Third, it opens a new horizon for the development of financial enterprises.
The regulatory clarification that the financial holding company refers to the management of financial institutions, can issue qualified capital instruments in accordance with the law, and carry out business collaboration under compliance conditions, giving the financial holding group a broader business field, higher brand value, and more risk control methods. Greater room for collaborative development.
At the same time, through effective and efficient supervision and guidance, it will further promote the financial prosperity of the industrial chain around the real economy and serve the real economy with higher quality.
Fourth, make new preparations for full opening up.
China has the top ten banks in the world, but there is no top-ranked financial holding group. In a certain sense, we need to build a first-class financial holding group that can be the “heavy weapon of the country” like the chip industry.
The promulgation of the financial control measures will make new preparations for China's financial control group to compete and cooperate with the world's top financial control group.
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