China extends takeover period for 9 financial cos linked to Tomorrow Holdings

Shanghai, China. Source: Denys Nevozhai/Unsplash

Chinese regulators said on Friday they would need another year to sort out the restructuring of nine financial firms connected to embattled Tomorrow Holdings, as authorities seek to stem systemic financial risks in the pandemic-hit economy.

Regulators seized control of the institutions last July, after their owner Tomorrow Holdings Co Ltd was targeted in a government crackdown on risks posed by financial conglomerates.

The takeover period of the nine mid-sized firms will be extended for another year till July 16, 2022, according to statements from the China Banking and Insurance Regulatory Commission (CBIRC) and the China Securities Regulatory Commission. (CSRC)

The six firms taken over by the CBIRC are Tianan Property Insurance Co of China, Huaxia Life Insurance Co, Tianan Life Insurance Co and Yi’an P&C Insurance Co., as well as New Times Trust Co and New China Trust Co.

The other three firms are New Times Securities, Guosheng Securities and Guosheng Futures.

“The takeover team has actively pushed forward the asset liquidation and confirmation of those firms, figured out the basic situation of the risk they contained, and maintained normal operation of their daily businesses,” CBIRC said in a statement.

The extension of the takeover period is to resolve the financial risks as soon as possible and to maintain financial stability, the CBIRC said.

Tomorrow‘s Chairman Xiao Jianhua was investigated more than four years ago amid the state-led conglomerate crackdown, and has not been seen since 2017.

In a previous takeover case involving Tomorrow, the central bank said the systemic risk posed by the group involved excessive borrowing and misuse of funds from the financial firms it owned.

Regulators took over Baoshang Bank in 2019, a lender once controlled by Tomorrow, citing severe credit risks.

The lender, which had operated nationwide, has been revamped into a much smaller lender back in its home region Inner Mongolia.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.