After nearly 4 months, China CITIC Financial Holdings Co., Ltd. (hereinafter referred to as "CITIC Financial Holdings") has recently completed the preparation and held its founding conference, and the financial holding era has officially begun.
CITIC Financial Holdings officially established
CITIC Financial Holdings official website shows that the company was established in March 2022. It is the first financial holding company to obtain the People's Bank of China license and a comprehensive financial service enterprise with complete financial industry licenses and a wide range of business. It is affiliated to China CITIC Group Co., Ltd. (hereinafter referred to as " CITIC Group ").
In terms of management team, the current chairman of CITIC Financial Holdings is Xi Guohua , and Li Qingping serves as vice chairman and general manager.
Public information shows that Xi Guohua was born in December 1963 and is currently the chairman of CITIC Finance. He also serves as the deputy secretary of the Party Committee, vice chairman and general manager of China CITIC Group Co., Ltd., deputy chairman, vice chairman and general manager of China CITIC Co., Ltd. , vice chairman and general manager of the Executive Committee, and vice chairman and general manager of China CITIC Co., Ltd.
Li Qingping, born in October 1962, is currently the vice chairman and general manager of CITIC Finance. She also serves as a member of the Party Committee, executive director and deputy general manager of CITIC Group, executive director, member of the executive committee and deputy general manager of China CITIC Co., Ltd. (hereinafter referred to as " CITIC Co., Ltd. "), and executive director and deputy general manager of China CITIC Co., Ltd. (hereinafter referred to as " CITIC Co., Ltd. ").
htmlOn July 15, CITIC Financial Holdings held its founding conference in Beijing. Zhu Hexin, Secretary of the Party Committee and Chairman of CITIC Group, put forward requirements for the development of CITIC Financial Holdings. First, always adhere to the leadership of the Party and improve the corporate governance mechanism of ; second, focus on economic and social needs and provide high-quality products and services; third, improve the risk control system and build a solid barrier to safe development; fourth, promote the comprehensive deepening of reform of and set a benchmark for innovative development; fifth, carry forward the fine tradition of and build the first brand of jinping.Zhu Hexin emphasized that it is necessary to encourage all financial subsidiaries to stick to their main business and return to their original nature, focus on major national strategies and key areas of the real economy, convey financial "live water" and improve the supply of financial services.
There is no precedent to follow how to do financial holdings in a solid manner. Regarding the next development of CITIC Financial Holdings, Xi Guohua pointed out that it is necessary to build efficient financial holdings by improving corporate governance, and realize capital management as the link, corporate governance as the platform, risk management as the bottom line, and wealth management as the driving force. At the same time, we will build safety financial control with effective risk control, resolutely prevent risks from superposition and spillover, and strive to maintain the industry-leading level of major risk indicators. In addition, we will build smart financial holdings by strengthening technological innovation, increase investment in financial technology , and promote the digital transformation of and intelligent upgrade of traditional financial services .
Before this, CITIC Securities and CITIC Bank had issued announcements respectively stating that the controlling shareholder was changed to CITIC Financial Holdings. CITIC Bank stated that its controlling shareholder CITIC Co., Ltd. transferred its more than 31.4 billion shares of CITIC Bank (accounting for 64.18% of the total share capital) to CITIC Financial Holdings for free, and transferred its CITIC Bank A shares convertible corporate bonds with a face value of 26.388 billion yuan to CITIC Financial Holdings for free.
CITIC Securities stated that CITIC Limited and CITIC Shares will transfer approximately 2.734 billion shares of CITIC Securities held to CITIC Financial Holdings for free, including nearly 2.3 billion A shares of CITIC Securities directly held by CITIC Securities and approximately 434 million H shares of CITIC Securities directly held by CITIC Securities, accounting for 18.45% of the total number of issued shares of CITIC Securities. After the free transfer is completed, CITIC Financial Holdings will inherit the current largest shareholder of CITIC Co., Ltd.
The industry structure may have new changes
China's comprehensive financial group began in 2002, from the initial pilot to rapid growth and then to standardized development, it took nearly 20 years.
In 2002, the State Council approved Everbright Group , CITIC Group, and Ping An Group as pilot institutions of comprehensive financial holding groups, and the three became the pathfinders and pioneers of comprehensive operations.
Since then, comprehensive financial groups have entered a period of rapid growth, and various forms of financial groups have emerged one after another, and most of them conduct business in the name of financial holding companies.However, the blind expansion of these financial groups has also triggered financial risks such as deviating from the real to the virtual.
Since 2017, policies such as the pilot measures for financial control supervision and management, financial control access management decisions, and financial holding companies have entered a period of standardized development. From June 2021 to January 2022, the Central Bank of
successively accepted applications from five companies to establish financial holding companies, namely CITIC Group, Everbright Group, Beijing Financial Holdings , Wanxiang Holdings, and Zhaorong Investment.On March 17, 2022, People's Bank of issued an announcement stating that it approved the establishment license of China CITIC Financial Holdings Co., Ltd. (Preparation) and Beijing Financial Holdings Group Co., Ltd. 's financial holding company.
Speaking of the plan and arrangements for financial holdings to issue licenses, Li Bin, director of the Macro Prudential Bureau of the People's Bank of China, said that the People's Bank of China has always adhered to the original intention of supervision and focused on the following factors in the process of carrying out access management of financial holding companies: First, non-financial enterprises should actually control two types of financial institutions or above, and the type and asset scale of the financial institutions they control are in compliance with the requirements. Second, the shareholder qualifications of the proposed financial holding company must be compliant, the major shareholders have outstanding core business, relatively strong capital strength, standardized business and real and legal investment funds. Third, the equity structure of the proposed financial holding company should be simple, clear and penetrating, and be able to penetrate and identify the actual controller and the ultimate beneficiary. Fourth, the organizational structure is sound and risk management systems are effective to ensure that after the establishment of a financial holding company, there is a complete corporate governance, a sound risk isolation mechanism, and sufficient capital level.
Li Bin emphasized that the People's Bank of China will continue to promote enterprises with establishment situations to take the opportunity of establishing financial holding companies to find out their assets, promote effective isolation of finance and industry, improve corporate governance and risk management, and realize centralized management of the financial sector equity . This will help improve the effectiveness of subsequent financial holding companies' overall supervision, promote financial holding companies to operate in accordance with the law, prevent the formation of cross-institutional, cross-market, and cross-industry risk transmission, maintain the stability of the financial system, enhance the ability to serve the real economy and high-quality development, and help the economy operate within a reasonable range.
Zheng Chenyang of the China Banking Institute believes that the competitive landscape of the financial holding industry may undergo new changes, and financial holding companies that do not meet the establishment requirements need to make rectifications in terms of equity transfer, business divestiture, and replacement of company names; some private and Internet financial holding companies that have major problems and endanger financial order may face a wave of exit.
