Chinese authorities have further stepped up efforts to use the financial holding company form to expedite regulatory scrutiny by setting their sights upon sprawling Internet giant Tencent.
Multiple sources said to Caixin that China’s financial regulators have ordered Tencent Holdings Ltd. to convert its finance-related operations into a financial holding company, in order to subject them to heightened supervision.
The move comes after Chinese regulators ordered fintech giant Ant Group to convert into a financial holding company, following the shelving of its dual listing on the Hong Kong and Shanghai bourses that was originally scheduled for early November 2020.
E-commerce giant JD.com is another Chinese tech giant expected to convert into a financial holding company, while Internet stalwart Sina.com made the transition in March of this year.
Chinese authorities have been pushing for the increased adoption of the financial holding company form since the second half of 2020, in order to expedite more comprehensive regulation of domestic financial activities.
Beijing issued key regulations on financial holding companies in September 2020 that expanded their remit, while in December of the same year Chinese central bank said that financial holding companies were “the way of the future” when it came to business and regulation.