① Huatai Insurance announced that Shenzhen Energy Finance plans to transfer all of its shares, and Shenzhen Energy will take over the shares; ② Shenzhen Energy stated that the share transfer was to meet the regulatory requirement that “finance companies are not allowed to invest in financial institutions and enterprises”; ③ several other finance companies are listing to transfer their shares in financial companies. The phenomenon of regulation forcing finance companies to withdraw from financial enterprises is prominent.
Financial Services Association, May 9 (Reporter Zou Juntao) Supervision continues to strengthen the operation and management of finance companies, forcing finance companies to speed up the “withdrawal” of financial institution shareholder lists.
On the evening of May 9, Huatai Insurance Group Co., Ltd. (hereinafter referred to as “Huatai Insurance”) issued an information disclosure notice regarding changes in shareholders. According to the announcement, Shenzhen Energy Finance Co., Ltd. (“Shenzhen Energy Finance”) plans to transfer its 12,200,000 shares (0.3034%) of Huatai Insurance shares to Shenzhen Energy Group Co., Ltd. (hereinafter referred to as “Shenzhen Energy”).
The announcement stated that after the equity transfer is completed, Shenzhen Energy Finance will no longer hold Huatai Insurance shares. The above shareholder changes will take effect after filing with the State Financial Supervisory Administration.
In order to meet regulatory requirements, Shenzhen Energy Finance withdrew from Huatai Insurance
What is behind this seemingly simple share transfer is actually pressure from regulation.
According to data, Shenzhen Energy Finance was established in 1996 with a registered capital of 1.5 billion yuan. In terms of equity institutions, Shenzhen Energy holds 70% of Shenzhen Energy Finance's shares and is its controlling shareholder.
On October 31, 2023, Shenzhen Energy issued a resolution announcement of the 12th meeting of the 8th board of directors stating that according to the “Administrative Measures on Enterprise Group Finance Companies” issued by the State Administration of Financial Supervision and Administration, finance companies are not allowed to invest in financial institutions and enterprises. Therefore, Shenzhen Energy Finance cannot continue to hold shares in Huatai Insurance.
A Financial Services Association reporter noticed that in October 2022, the former China Banking Insurance Regulatory Commission revised and issued the “Administrative Measures on Enterprise Group Finance Companies” (hereinafter referred to as the “Measures”) to regulate the behavior of enterprise group finance companies (“finance companies”), prevent financial risks, and promote the steady operation and healthy development of finance companies
The newly revised “Measures” require further strengthening the main business of finance companies, focusing on serving within the group, and returning to the roots of serving the real economy. Article 22 of the Measures stipulates, “Finance companies shall not issue financial bonds and shall not invest in financial institutions and enterprises.”
Shenzhen Energy said that in order to meet regulatory requirements, Shenzhen Energy Finance plans to transfer 0.3034% of Huatai Insurance's shares to the company. The 12th meeting of the company's board of directors reviewed and agreed that the finance company agreed to transfer 0.3034% of Huatai Insurance's shares to the company, with a share transfer amount of 39 million yuan.
Regulations continue to be strengthened, and a number of finance companies are “selling off” related shares
It is worth noting that cases similar to the withdrawal of Shenzhen Energy Finance from Huatai Insurance have also occurred in the industry before. In addition to transferring through intra-group agreements, many finance companies have also chosen to transfer corresponding shares through external listing.
According to the Beijing Equity Exchange, on March 25, Sinopec Finance Co., Ltd. listed and transferred all of its 36721.52 million shares of Guangfa Bank (0.0169% of the total share capital), with a reserve price of 34.2021 million yuan. Furthermore, on September 26 of last year, Minmetals Group Finance Co., Ltd. was also listed and transferred all 604.113.15 million shares of Guangfa Bank (0.2772% of the total share capital) on the Beijing Property Exchange, with a reserve price of 626.90 million yuan.
However, at present, many finance companies are still investing in holding shares in financial companies. According to Tianyancha data, China Electric Power Finance Co., Ltd. holds 8% of Yingdatai Life Insurance's shares, 1.2727% of Yingdataihe Financial Insurance's shares, and 10% of Cathay Pacific Fund's shares; China Heavy Duty Truck Finance Co., Ltd. holds 0.2329% of Dezhou Bank's shares, Shandong Ningjin Agricultural Commercial Bank 0.2205%, and Shandong Qingyun Agricultural Commercial Bank 0.0832%; CGN Finance Co., Ltd. holds 5.9259% of Anxin Fund; China Datang Group Finance Co., Ltd. holds 13.47% of Fudian Bank's shares, etc.
Among them, the business scope of some finance companies, such as CGN Finance and China Datang Group Finance, includes “equity investment in financial institutions.” However, the Financial Services Association reporter noticed that the business scope of Shenzhen Energy Finance also includes “equity investment in financial institutions,” but according to the Shenzhen Energy Announcement, it still does not meet the regulatory requirements of the Measures.
It is worth noting that regulation continues to strengthen the operation and management of finance companies this year. On April 29, the China Financial Supervision and Administration issued the “Guiding Opinions on Promoting the Standardized and Healthy Development of Enterprise Group Finance Companies and Improving the Quality and Efficiency of Supervision”, which once again requires finance companies to adhere to internal financial service attributes. Overfinancing in the peer market is strictly prohibited to prevent alienation as a channel and tool for enterprise groups to finance foreign countries.