China allows Peking University Founder Group’s finance unit to enter bankruptcy process
- The China Banking and Insurance Regulatory Commission has approved Peking University Founder Group’s finance unit to enter bankruptcy process
- A consortium led by Ping An Insurance and Huafa Group is undertaking the restructuring of PUFG approved in 2021
The financial unit of Peking University Founder Group (PUFG), the business arm of one China’s most prestigious colleges, has received the go-ahead from the country’s banking and insurance regulator to enter bankruptcy proceedings.
The China Banking and Insurance Regulatory Commission (CBIRC) has given preliminary approval for Peking University Founder Group Finance to enter the bankruptcy process, according to a statement posted on the regulator’s website on Tuesday. Founder Group Finance, which was launched in 2010, provides financial services to PUFG and its subsidiaries.
“The company should move forward with follow-up work in accordance with related laws,” the statement said. “If it encounters any serious issue, the company should report to the CBIRC on time.”
“Generally speaking when it involves the insolvency of a financial institution, the CBIRC will intervene in the procedure before it officially goes bankrupt to ward off any instability in the financial system,” said Weng Guanxing, head of law firm Wintell & Co’s Lingang office in Shanghai.
The CBIRC’s initial approval comes as conglomerate Ping An Insurance Group undertakes PUFG’s restructuring following its debt defaults starting in 2019. PUFG had interests in industries ranging from software development to securities trading and real estate.