Recently the People's Bank of China (PBC) has released the Trial Measures for Supervision and Administration of Financial Holding Companies (Draft for Comments), to solicit social opinions on the standardized development of financial holding companies, promote the healthy development of financial holding companies, effectively prevent and control financial risks, and better serve the real economy. As one of the first five pilot financial control holding companies, Shanghai International Group (SIG) is further focusing on its primary financial business and concentrating on building a financial holding group.

To better meet the requirements of pilot supervision and perform the rights and responsibilities of the state-owned shareholder assigned by SHSASAC, SIG has worked with Shanghai Pudong Development Bank Co., Ltd., Guotai Junan Securities Co., Ltd. and Shanghai Rural Commercial Bank Co., Ltd., to develop the state-owned capital supervision and pilot financial holding data acquisition system. The system, launched in July, lays a solid foundation for forming a normalized work mechanism with focus on consolidated management, risk management and related transactions at the next stage.

While launching the system, the relevant staff of SIG's headquarters and holding financial institutions have completed software training, account unification and classified management, and fully accomplished the synchronous acquisition and risk warning of the three financial institutions' state-owned capital supervision data by SIG and the Shanghai Municipal State-owned Assets Supervision and Administration Commission. On this basis, the financial and risk monitoring indicators PBC requires pilot financial holding companies to submit have been added to the system.The launch of the state-owned capital supervision and pilot financial holding data acquisition system has further improved SIG's risk management structure, and met the requirements of the supervisory department. SIG will further upgrade the system, gradually establish a comprehensive risk management system compatible with state-owned supervision and pilot financial holding, explore and advance the development framework of financial holding companies in an accelerated way, better prevent risks of relevant financial institutions, support the development of key local financial institutions, and strive to be one of the first to get the license for financial holding companies.