China is increasing its regulatory scrutiny of non-bank financial companies including Ant Group, the Chinese fintech conglomerate expected to raise as much as $30 billion in its initial public offering this year, reported the Financial Times.
State media reported on Thursday that China’s State Council, or cabinet, has approved regulations that would introduce licensing procedures for financial holding companies and, potentially, capital requirements.
The rules stipulate that non-financial enterprises with interests in entities in at least two financial segments, and which hold a majority stake or exercise control over those entities, must apply for a licence to establish a financial holding company, according to state news agency Xinhua.
Ant Group was among financial holding companies named in the 2018 financial stability report published by the People’s Bank of China. Other groups on the list included conglomerates China Evergrande, HNA Group and Fosun International.