China’s central bank released rules that will subject Ant Group Co. and other conglomerates to new financial regulations, forcing companies to put up substantial capital to back payments, lending and other finance businesses they own. The People’s Bank of China on Sunday said firms that operate two or more financial businesses in the country will be classified as financial-holding companies. The regulations take effect on Nov. 1 and are aimed at large state-owned and private conglomerates, as well as internet companies, that control financial businesses which could pose systemic risks. The rules would also apply to large businesses whose financial assets, such as loans, comprise 85% or more of their total assets. Ant, the financial-technology giant controlled by billionaire Jack Ma that is preparing for initial public offerings in Hong Kong and Shanghai, is planning to comply with the new rules.

Source: Wall Street Journal September 13, 2020 16:07 UTC