China fintech: banking and insurance watchdog CBIRC lays out ways it may punish risky consumer finance companies

Consumer finance companies with lowest grade could face nationalisation Grading system comes after Beijing suspended Ant Group IPO The rating system comes as China clamps down on its rapidly growing consumer finance sector, citing systematic risk and customer complaints. China's top banking and insurance watchdog has created a trial framework for grading consumer finance companies, which could lead to the break-up of the most errant industry players. The China Banking and Insurance Regulatory Commission (CBIRC) said it would judge these companies on factors such as corporate governance, internal controls, capital and risk management, professionalism and technology, according to a notice…