FinTech Firms: Chinese Regulators Warn Fintech Firms Against Anti-Monopoly Behavior
Regulators, which include the People’s Bank of China (PBOC) and Chinese banking and securities regulators, said in a statement Thursday that they had summoned companies, including Xiaomi’s fintech arm; Tencent; Bytedance; JD Finance of the JD.com e-commerce platform and the financial arm of the Meituan food delivery platform.
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Regulators have warned of the “disorderly expansion” of capital, which is part of the government’s increased control over technology and internet companies that have entered the lucrative financial services industry, offering services such as wallets. digital services, wealth management services and loans.
To help reduce risks to China’s financial system, Beijing has stepped up scrutiny of tech companies and tightened antitrust regulations in recent months. It is developing new laws to ensure that large companies do not crowd out competition, abuse their market position, or infringe on consumer rights.
As part of their crackdown on online financial services, authorities abruptly halted an initial $ 34.5 billion public offering last year by Ant Group, which is affiliated with e-commerce giant Alibaba.
The regulators’ statement recognizes that online businesses have helped improve financial services and make them more inclusive. But he said some companies are unlicensed and some engage in unfair competition and infringe the legal rights of consumers.
“The convened online platform companies run large-scale integrated businesses and are influential in the industry and face typical problems. They must take the lead in seriously correcting these problems,” the statement said.
Companies have been urged to conduct self-inspections and remedy any issues in accordance with financial regulations. Financial firms must be licensed to operate and the expansion of non-bank payment accounts must be strictly controlled, the statement said.
Businesses have been ordered to break the information monopoly. Personal credit reports should only be done by licensed credit reporting agencies, he said.
In April, e-commerce platform Alibaba was fined a record $ 2.8 billion by market regulators for violating China’s anti-monopoly law. Earlier this week, the regulator also said it had launched an investigation into Meituan, the country’s largest food delivery platform, into suspected monopoly behavior.