[Pan Gongsheng, Deputy Governor of the People’s Bank of China, answers reporters’ questions about the financial management department’s re-interview with Ant Group] On April 12, 2021, the People’s Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, Foreign Exchange Bureau and other financial management departments jointly interviewed Ant Group again . Pan Gongsheng, deputy governor of the People’s Bank of China, answered questions from reporters on the interview on behalf of the four departments.

  Q: What are the considerations for the financial management department to discuss the Ant Group again?

   Answer: The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China, the Central Economic Work Conference and the Ninth Meeting of the Central Finance and Economics Committee clearly stated that it is necessary to strengthen anti-monopoly and prevent the disorderly expansion of capital, and effectively prevent risks. Proceed from the strategic height of building a new competitive advantage of the country, establish and improve the platform economic governance system, and promote the healthy and sustainable development of the platform economy.

   Since the four-sector joint supervision interview in December last year, Ant Group has established a dedicated team to formulate a rectification plan under the guidance of the financial management department and actively carry out rectification work. This time, the financial management department once again jointly interviewed relevant personnel of Ant Group, mainly to require Ant Group to face up to the serious problems in financial business activities and the seriousness of the rectification work, to benchmark the regulatory requirements and the proposed rectification plan, and to conduct in-depth and effective rectification. To ensure the realization of lawful operation, upright innovation, and healthy development; we must adhere to the original source of serving the real economy and the people, actively respond to the national development strategy, and increase financial technology innovation on the premise of meeting the requirements of prudential supervision, and enhance international competition in the field of financial technology It will play a greater role in building a new development pattern of “dual cycles”.

  Q: What is the main content of Ant Group’s rectification plan?

   Answer: Since the start of the rectification work of Ant Group, the financial management department has conducted in-depth communication with Ant Group on rectification measures and urged Ant Group to form a comprehensive and feasible rectification plan.

The rectification content mainly includes five aspects: First, correct unfair competition behavior in the payment business, give consumers more choices in payment methods, and disconnect the improper connection between Alipay and other financial products such as “Huabei” and “Bibai”. Rectify irregularities such as nesting credit business in the payment link. The second is to break the information monopoly, strictly implement the requirements of the “Credit Investigation Industry Management Regulations”, operate personal credit investigation services with a license in accordance with the law, collect and use personal information in accordance with the principle of “lawfulness, minimum, and necessity” to ensure personal and national information security. The third is that Ant Group has applied for the establishment of a financial holding company as a whole, and all institutions engaged in financial activities are included in the financial holding company to accept supervision, improve risk isolation measures, and standardize related transactions. Fourth, strictly implement the requirements of prudential supervision, improve corporate governance, earnestly rectify financial activities such as illegal credit, insurance, and wealth management, and control high leverage and risk contagion. Fifth, the liquidity risk of important fund products was controlled and the balance of Yu’e Bao was actively reduced.

  The financial management department will urge Ant Group to effectively implement the rectification plan, grasp the pace of work, maintain business continuity and normal business operations, ensure that the broad masses of people’s experience of financial services does not decline, and continue to improve the level of inclusive financial services.

  Q: In the next step, how can the financial management department strengthen the financial supervision of platform enterprises?

  Answer: The financial management department will adhere to the principles of fair supervision and strict supervision, focus on the long-term, take into account the current situation, make up for shortcomings, strengthen weaknesses, promote fair competition, oppose monopoly, and prevent the disorderly expansion of capital. The first is to adhere to “finance-oriented, technology-enabled”. Platform companies should focus on serving the real economy and preventing financial risks when carrying out financial business, and should not make technology a “protective color” for violations of laws and regulations. Regarding business violations, strictly investigate and deal with in accordance with law. The second is to insist that all financial activities be included in financial supervision. Financial business must be licensed to operate; enhance regulatory capabilities and levels, optimize regulatory frameworks, and prevent regulatory arbitrage. The third is to adhere to both development and standardization. Strengthen supervision in accordance with the law, standardize market order, prevent market monopoly, protect data property rights and personal privacy; at the same time, grasp the laws of platform economic development, improve financial service experience, and consolidate and enhance the international competitiveness of platform enterprises.

The financial management department will continue to adhere to the “two unshakable”, create a fair and competitive market environment, continue to support private capital to carry out financial technology activities in accordance with the law, protect property rights in accordance with the law, promote entrepreneurship, and stimulate the market vitality and technological innovation capabilities of private capital .

  Q: What are the considerations of China’s financial management departments in strengthening international financial technology supervision cooperation?

   Answer: In recent years, the rapid development of financial technology and platform economy has played an important role in improving the efficiency of financial services, the inclusiveness of the financial system, and reducing transaction costs. At the same time, due to its characteristics of cross-border, mixed-industry, and cross-regional operation, the risk contagion speed is faster, the spread is wider, and the negative spillover effect is stronger. It poses new challenges to financial supervision and has become the common face of supervisors of all countries in the world. New problem.

   The regulatory authorities of the world’s major economies have paid great attention to this and have taken practical actions to make regulatory adjustments and policy responses. In terms of regulatory concepts, follow the principle of “same business, same regulation”, and strive to strike a balance between promoting the development of financial technology and preventing financial risks. In terms of supervision methods, explore the use of big data, cloud computing, artificial intelligence and other scientific and technological achievements to improve risk monitoring and perception capabilities and penetrating supervision capabilities. In terms of regulatory content, it emphasizes the protection of personal information and anti-monopoly. For example, the European Union implemented the General Data Protection Regulation in 2018 and accelerated the advancement of the Data Governance Act; the United States has successively initiated antitrust investigations against large technology companies in recent years; Germany passed the tenth “Anti-Restriction of Competition Act” in 2020 Amendments and so on.

China’s financial management department is willing to further strengthen cooperation with international financial organizations and regulatory authorities of various countries in anti-monopoly, data supervision, operation management, consumer protection, etc., promote the formulation of financial technology regulatory standards, strengthen regulatory coordination, and jointly create an open, inclusive, and A safe financial technology ecological environment enhances the innovation capability of the financial industry, while preventing cross-border regulatory arbitrage and cross-border contagion of financial risks.


By zhiwo

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6 months ago

1. Legal basis On July 23, 2020, the 5th Executive Meeting of the People’s Bank of China in 2020 reviewed and approved the “Trial Measures for the Supervision and Administration of Financial Holding Companies”, and submitted to the Party Central Committee and the State Council for approval, on September 11, 2020 Released and will take effect on November 1, 2020. On September 13, 2020, the People’s Bank of China formally issued the “Financial Control Measures” (PBC Order [2020] No. 12) in accordance with the State Council’s “Decision on the Implementation of Access Management for Financial Holding Companies” (Guo Fa [2020] No. 12). No 4). Trial Measures for the Supervision and Administration of Financial Holding Companies_Bank_中国Government.com 2. Key Provisions Article 2 Paragraph 3 The financial institutions referred to in these Measures include the following types: (1) Commercial banks (excluding rural banks) and financial leasing companies. (2) Trust companies. (3) Financial asset management company. (4) Securities companies, public fund management companies, and futures companies. (5) Life insurance companies, property insurance companies, reinsurance companies, insurance asset management companies. (6) Other institutions recognized by the financial management department of the State Council. The financial institutions controlled by financial holding companies as used in these Measures refer to domestic and overseas financial institutions controlled or actually controlled by financial holding companies. These Measures collectively refer to holding or actual control as substantial control. A financial holding group refers to a corporate legal entity consortium formed by a financial holding company and its holding institutions. 3. Target impact Ant Financial’s overall application to be a financial holding company is not to allow Ant Financial Services to pretend to be its own technology company by changing its name to “Ant Technology.” On the surface, Golden Services is a technology company, in fact, it is actually a financial holding company. According to the “Trial Measures for the Supervision and Management of Financial Holding Companies” and “Decision on Implementing Access Management of Financial Holding Companies”, the concept of financial holding companies is defined by Ant Financial. In line with these definitions, it must be used as a financial holding company for access management. 4. Conditions and procedures Conditions and procedures for the establishment of a financial holding company (1) To apply for the establishment of a financial holding company, in addition to the requirements stipulated in the “Company Law of the People’s Republic of China”, the following conditions should also be met: 1. The amount of paid-in registered capital No less than RMB 5 billion, and no less than 50% of the total registered capital of the financial institution directly controlled; 2. Shareholders and actual controllers have good reputation and comply with relevant laws, administrative regulations and relevant regulations of the People’s Bank of China; 3 .Have qualified directors, supervisors and senior managers; 4. Have the ability to continuously replenish capital for the financial institutions it holds; 5. Have a sound organizational structure and effective risk management, internal control systems and other prudential conditions. The most important of the above regulations are the 4th and 5th, that is, Ant, as a financial holding company, must also comply with the minimum capital and risk management and internal control capabilities comparable to banks and other banking financial institutions. Ant is never allowed to be a technology company. Only through internal risk control can be leveraged to issue credit. 5. Impact of the incident This is another major move after the cleanup of P2P with technology and finance as a cover. As soon as P2P cancer is removed, one has to pay attention to the improper financial business of ants, dogs and other substantive financial companies that use technology companies as the cover. With risk control measures, it is destined to be a milestone event in the history of China’s financial risk control.

6 months ago

This is a big knife. From business regulations, to tax regulations, to data regulations… Basically, excess returns will be affected. The Internet platform has gone from the false fire, and the valuation will be tested again… It can be seen that the regulators are still very caring for Ant Financial, but Ant Financial is too big, and the responsibility must be greater. No country in the world will deregulate the financial market, deregulation = foolish behavior = irresponsible to the economy.

6 months ago

Ant’s overall application as a financial holding company is actually an old news. Let’s talk about it here, why should we apply for the overall application as a financial holding company? First of all, we must first understand what a financial holding company is. On September 13, 2020, the “Decision on the Implementation of Access Management for Financial Holding Companies” issued by the State Council has made it clear: The term “financial holding companies” in this decision refers to the “Company Law of the People’s Republic of China” and this decision. A limited liability company or joint stock company limited by shares that is established that controls or actually controls two or more financial institutions of different types and that only carries out equity investment management by itself and does not directly engage in commercial business activities. In other words, holding or actually controlling two or more different types of financial institutions (referring to banks, securities companies, financial asset management companies, etc.) are usually financial holding companies. So how did Ant not apply to be a financial holding company before, so how did it meet the regulatory requirements? Many students may have heard of this method, which is the “small financial control” model. What is Xiaojinkong? Ant previously did not apply for the establishment as a whole, but set up the wholly-owned Zhejiang Rongxin Network Technology Co., Ltd. as a financial holding company, and this company will hold shares in a specific financial institution. This model of setting up financial holding companies under the group and accepting supervision is the “small financial control” model. Then why did Ant Group apply as a financial holding company as a whole afterwards? This has to come back to the question of why special regulations should be issued to regulate financial holding companies. In this regard, the beginning of the “Decision on Implementing the Access Management of Financial Holding Companies” has been written very clearly: In order to strengthen the supervision and management of non-financial enterprises, natural persons and other entities holding or actual control of financial institutions, and to regulate the behavior of financial holding companies, To prevent systemic financial risks, the following decision is made now… Yes, because the activities of financial holding companies will have an impact on finance, they must be regulated. So, for the small financial holdings and financial holdings, one is to set up a subsidiary for you to supervise, and the other is to come into the supervision by themselves. It is self-explanatory which supervision scope is broader? Well, this is also a big trend. After all, you can’t make money like a financial company, enjoy high valuation like an Internet company, and enjoy loose supervision like a technology company, right?

6 months ago

Shuangwen’s interpretation method is Ant: I think the Basel Agreement is outdated…Four ministries: I don’t want you to think, I want us to think. A more detailed method of interpretation is one of Ant’s previous attempts to challenge the Basel Agreement. It has various data portraits of users in its hands, which can be used to realize risk prediction and control. However, various regulatory agencies now need to supervise user data together, that is, personal information protection and anti-monopoly, so as to avoid companies relying on their data and relying on the monopoly of data to engage in high-risk capital leverage and disorderly expansion.

6 months ago

In a word, why did you go? Has always advertised himself as a technology company, a subject engaged in the financial industry stupefied that he is a technology company? What’s your technological innovation? Why would you refuse to follow the normal path? Because of the lack of money, the control is still strict! In the early years, in order to develop, the country could tolerate the irregular operations of some companies. The results of it? Ma Yun has expanded! You first preached that 996 is a blessing, which is already the Three Views and its wrongness. Seeing that the country and the media have not done anything cruel to you, you are even more vulnerable! As the number one person in a large group, you enjoy the huge dividends that the country brings to you. You know what harm the lack of supervision of finance will cause to the country, and you actually bombard the country’s regulatory system? Do you really think it’s Jack Ma’s era? Did you eat Robin Li and Ma Huateng in the same period? A few nonchalant media touted it, and a group of your company knelt and licked at the sight of the money. Do you think you are number one in the world? Public bombardment of the country’s financial policy, are you going to rise up? If you don’t knock you down, the law of heaven cannot be tolerated! Count Huabai and Borrow again, how many people have you pitted? Technology companies lend usury, you are! You are not a good national entrepreneur. Do you have to be a capitalist? Our country is a socialist country at any rate. You want China to learn from the United States. The wealthy capitalists and people are getting poorer and poorer. If people can’t search, they will go to the middle class? Where is your conscience? Hurry up, change your mind, let the company transfer! If you make enough money, the pattern will end here. Isn’t it good to be a rich man in the second half of his life? Don’t toss, you can’t fight our motherland, otherwise you will be set on the pillar of shame in history!

6 months ago

The Ant Group said that it has recently completed the research and formulation of the rectification plan, including: applying for the establishment of a financial holding company as a whole; applying for the establishment of a personal credit company; and including all “borrowing” and “huabei” into consumer finance companies. Ant Group news, on December 26, 2020, the financial management department put forward five key business areas of rectification requirements for Ant Group. Ant Group attaches great importance to the seriousness of the rectification work, and under the guidance of the financial management department, comprehensively benchmarks the regulatory requirements , The research and formulation of the rectification plan has been completed recently. Ant Group will apply for the establishment of a financial holding company as a whole, and realize that all financial businesses are under supervision; the payment business returns to the payment source, adheres to the positioning of small amounts of convenience and service for small and micro businesses; applies for the establishment of a personal credit investigation company, licensed according to law, and operates in compliance with the law. Credit business, strengthen personal information protection, and effectively prevent data abuse; incorporate all “borrow” and “huabe” into consumer finance companies, carry out consumer finance business in compliance with laws and regulations; strengthen consumer rights protection, and strengthen financial consumer suitability management; Improve corporate governance, abide by the legal rules of fair competition, standardize related transactions, strengthen risk prevention and control, create a fair competition market environment, and further strengthen the construction of a social responsibility system. The aforesaid matters will be implemented in accordance with relevant regulations such as regulatory requirements and the Articles of Association of the Ant Group after the implementation of the corresponding procedures. The Ant Group deeply recognizes that the state regulates platform economic development in accordance with the law and incorporates all financial activities into financial supervision. It is an important measure for overall development and safety. It is not only conducive to the healthy and orderly development of the industry, but also maintains a fair and competitive market environment. , To promote the inherent requirements of high-quality development. Under the guidance of the financial management department, Ant Group will conscientiously implement the relevant work of rectification and reform to ensure the comprehensive standardization of the operation and development of financial business, while making every effort to ensure business continuity and service quality, and continuously improve the real economy, small and micro enterprises and consumers. Service Level. Ant Group will also use this transformation as an opportunity for innovation to strengthen its position of serving the real economy based on small and micro businesses, adhere to the development philosophy of technology-driven, upright innovation, and openness and win-win development, and consciously integrate corporate development into the overall national strategy and continue to increase Invest in scientific and technological innovation, continuously enhance the building of compliance capabilities, continuously improve international competitiveness, strive to create value for society, and contribute to the new development pattern of serving the “dual cycle”.

6 months ago

First try to interpret the issue of the overall application as a financial holding company. The “Trial Measures for the Supervision and Administration of Financial Holding Companies” was issued by Order No. 4 of the People’s Bank of China in 2020 and will be officially implemented on November 1, 2020. Among them, Article 2 of Chapter 1 clarifies that “the financial holding company referred to in these Measures refers to two or more financial institutions of different types established in accordance with the law, holding or actually controlling two or more different types of financial institutions, which only carry out equity investment management and do not directly engage in commercial business activities. A limited liability company or a company limited by shares.” According to the content disclosed in the Ant Group’s prospectus, among the Ant Group’s subsidiaries are Chongqing Ant Merchants Small Loan Co., Ltd., Chongqing Ant Small and Micro Loan Co., Ltd., and Tianhong Fund Management Co., Ltd. and Cathay Pacific Property Insurance Co., Ltd. should all belong to different types of financial institutions, so it is no problem to clarify Ant Group as a financial holding company. However, the “Trial Measures for the Supervision and Management of Financial Holding Companies” mainly clarify the content of the establishment, management, consolidation, and supervision of financial holding companies, rather than the supervision and management methods for the specific operations of financial institutions. This aspect should not be over-interpreted. Secondly, it is not difficult to see that this should be clear about the supervision of financial technology platform companies. The financial technology platform itself is a new thing, and its role in technological innovation services cannot be denied, but it definitely makes money that should have been made by financial institutions. Regarding the regulation of such new and cross-cutting things, there have been some vacancies in the rules before. The Ant Group is large in size, high in exposure, and strong in demonstrating. It is undoubtedly to set the tone for the future to clarify this kind of supervision at a node such as its listing and IPO. In answer to the reporter’s question, it was mentioned that “all financial activities should be included in financial supervision”, which means that the business of Ant Group is distinguished. The technical service business is still the management of technology companies, but all processes involving financial activities will be included in financial supervision. Up. Finally, for Ant Group, it is definitely a short-term negative. After related businesses are included in financial supervision, gross profit margin, yield, asset-liability ratio, etc. will inevitably be affected. But in the long run, the negative impact may be even more serious. Compared with regulatory penalties or rectification opinions, Ant may be more worried about the management remaining silent. Guided by the management’s rectification opinions, relying on innate channel advantages, supplemented by the volume and market share advantages accumulated in the previous period, it is not difficult for Ant to formulate a long-term and stable development strategy even under financial supervision. After all, even if Ali was fined 18.2 billion, the stone fell to the ground, and the Hong Kong stock market closed up 6 points the next day.

6 months ago

Ant Group is a financial enterprise on the network platform. Its core function is financial communication, which is managed by a financial holding company. It is reasonable and reasonable. It is an amendment to the lack of supervision in the past.
Fortunately, Ant Group rectified and reformed before listing. Fortunately, the supervision was in place in time; otherwise, it would have a huge impact on the market after the listing; even when it was too big to fail, the rescue would be disastrous.

6 months ago

Sooner or later. Mutual Finance has not been included in supervision before, and there are great hidden risks. Risk disclosure and credit review are lacking, and the financial system needs to be standardized. Before, my father satirized the Basel 3 agreement a lot, but this agreement is very important for the risk management of the financial system. This is an international standard for the financial system, so it must be followed. It is a good thing for the market, and even more good for investors. For a long time, the information disclosure in the mutual gold platform has been very unequal, the risk disclosure is also not standardized, there is no unified standard, and customers are not clear about the product and the risk. After unified regulation, investors are even more protected. The scale of credit will also be regulated, and there is also a hard standard for risk control. The share price of Alibaba Group has also continued to rise sharply. After falling, it will be a hero again.

6 months ago

Many people only see the appearance, and there is a deep meaning, which is to open the way for the financial system of Toutiao. You have divided the market and profits. What will Toutiao eat? Looking at it in five years, Toutiao’s finance will exceed everyone’s imagination. Toutiao’s closed loop and ecology are also more stable. Don’t sell Toutiao employee options lightly!

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