Offshore Access Requirements for NBFCs Are Reduced

On October 17, the Nation Financial Regulatory Administration issued the revised Measures for the Implementation of Administrative Licensing Matters for Non-Bank Financial Institutions (“Measures”), which will come into effect on November 10, 2023.

The Measures consist of seven chapters and 204 articles. The Measures adjust the entry conditions for some matters. In conjunction with the Measures for the Administration of Enterprise Group Finance Companies and the Measures for the Administration of Automobile Finance Companies, which have been revised in recent years, the Measures simultaneously adjust the conditions for the establishment of organizations and shareholders’ access and improve the conditions for access to the special business of finance companies. We will continue to expand opening up to the outside world. The Measures reduce the entry conditions for foreign institutions to acquire shares in financial asset management companies and abolish the total asset requirement for foreign financial institutions to act as contributors to financial asset management companies. The Measures promote the work of simplification and decentralization. The approval of the qualifications of the heads of financial departments and internal audit departments of financial asset management companies is canceled and replaced by an ex post facto reporting system. Also, the Measures improve the relevant administrative licensing provisions.