China Banking and Insurance Regulatory Commission, Implementing Measures on Administrative Permission Matters of Non-Bank Financial Institutions

However, restrictions are also imposed concerning shareholding. The Measures strengthen the penetrative regulation of the major shareholders of non-bank institutions, and their affiliated persons and persons acting in concert, make further improvements in terms of the matters prohibited to shareholders, the obligation to supplement capital, requirements in respect of the provisions of a company's articles of association, etc. and add exceptions to the prohibition on shareholders of non-bank institutions transferring the equity held by them within five years.  The Measures also appropriately enhance the financial indicator requirements in respect of the continuous profitability capabilities, percentage of equity investment balance accounted for, etc. of non-financial enterprises that serve as the controlling shareholders of non-bank institutions.  An investor and its controlling shareholder, de facto controller, majority-owned subsidiaries, persons acting in concert and other enterprises controlled or jointly controlled by the de facto controller that serve as a major shareholder may not in principle acquire an equity interest in more than two non-bank institutions, and may not have a controlling interest in more than one or an equity interest in more than two of the same type of non-bank institution(s).