Chairmen and executives of Chinese financial holding companies face tighter scrutiny under new central bank rules

China’s central bank spells out specific requirements for key decision makers at financial holding companies as part of efforts to rein in fintech groups

New rules could affect big tech groups such as Ant, Tencent, both subject to growing regulatory scrutiny

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Tencent Chairman and CEO Pony Ma Huateng. Tech giants have come under increasing scrutiny from Beijing. Photo: Reuters

Published: 10:36pm, 2 Apr 2021Updated: 12:34am, 3 Apr 2021

Chairmen and senior executives of Chinese financial holding companies will need to have at least eight years of financial industry experience, according to a new set of rules announced by the central bank on Friday.

The time they spend in the same role at a holding company will also be limited.

Initially proposed in September by the People’s Bank of China (PBOC), the new regulations are designed to subject the country’s big technology groups to rules similar to those governing banks. The new trial measures announced on Friday apply to key decision makers at financial holding companies, and should enable the central bank to keep track of appointments of senior executives and directors.

Effective from May 1, the rules are designed “to standardise the operations of financial holding companies, and prevent operational risks”, the PBOC said.

China’s big tech groups such as Ant Group, controlled by Chinese billionaire Jack Ma, and Tencent, controlled by fellow billionaire Pony Ma, are grappling with growing scrutiny from the central bank and other regulators, which have unleashed a raft of new regulations and antitrust inquiries in recent months. Ant is affiliated with Alibaba Group, owner of the South China Morning Post.

Tencent Chairman and CEO Pony Ma Huateng attends the WAIC (World Artificial Intelligence Conference) in Shanghai, China, September 17, 2018. Photo: Reuters

China’s clampdown on the fintech industry gained speed after regulators abruptly shelved Ant’s US$34.5 billion dual listings in Shanghai and Hong Kong on November 3, over concerns that the Hangzhou-based firm posed a systemic risk to the country’s financial system and was in breach of consumers’ privacy.