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ARTICLE · 11 JANUARY 2023

Risk Disposal, Market Exit Of Group Finance Companies

Jingtian & Gongcheng
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Based on the Notice on Regulating Business Transactions Between Listed Companies and Finance Companies of Enterprise Groups, released by the China Securities Regulatory Commission...

ChinaFinance and Banking
Zhenxiang Wang
Zhenxiang Wang
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On October 13th, 2022, the China Banking and Insurance Regulatory Commission (CBIRC) promulgated the Measures for the Administration of Finance Companies of Enterprise Groups. Set to come into effect on November 13th, 2022, the measures contain chapters dedicated to the risk disposal and market exit of finance companies under enterprise groups.

CAUSE OF RISKS

Based on the Notice on Regulating Business Transactions Between Listed Companies and Finance Companies of Enterprise Groups, released by the China Securities Regulatory Commission (CSRC) and the CBIRC, as well as the verdict on substantive mergers by the Fifth Intermediate People's Court of Chongqing municipality in Panda Autonomous Leasing et al v Lifan Finance et al (2020), the author believes that finance companies incur risks primarily for the following reasons:

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