New China rules require non-bank companies to apply for licences

Raises scrutiny ahead of Ant IPO

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 bn in its initial public offering this year, Financial Times reported on Thursday.

According to state media reports 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,