Posted inRegulation

China relaxes internet finance firm registration

Three types of financial companies are expected to resume registration after a complete suspension on registration of new finance-related firms, mainland media reported.

The three types cleared to register are investment management or advisory firms with a focus on secondary markets; fund-of-funds companies; venture capital or equity investment managers.

Hong Lei, president of the Asset Management Association of China, said on Friday that these companies would be allowed to resume registration after concerns were raised over regulation of internet finance companies, according to Caixin.

The media reported earlier that Chinese authorities had suspended all new registration of companies with finance-related names and businesses as part of its efforts to rein in internet finance businesses. The halt was applied in major cities including Shanghai, Shenzhen and Beijing, it said.

It also affected applications to open offshore financial businesses, such as wealth management firms.

Firms now need to get approval from the financial regulators first before registering the companies with local offices of the State Administration for Industry & Commerce, the report said. 

The internet finance crackdown campaign will continue until January 2017. 

Part of the Mark Allen Group.