China’s Top Leaders Indicate the Further Tightening of Financial Regulations
Chinese leaders have indicated that the country will move to further strengthening of financial regulations to avoid the disorderly expansion of capital, especially in the internet sector. Officials have pressed on the need to capture illegal activities that act as a grave threat to China’s economy.
A recent meeting occurred with China’s top officials including President Xi Jinping that reflects that the top officials are concerned about the risks and they are determined to eliminate those risks.
The Central Committee for Financial and Economic Affairs held a meeting to call for the enhancement of the financial framework and recommended that all financial activities will be regulated. The meeting particularly pressed on the need to develop and enhance the regulatory framework for online platforms with clear guidelines and limitations to halt the issues such as monopolistic activities that play a part in the uneven expansion of capital.
This recent sign is followed by an action taken by the financial watchdogs against some internet companies for some monopolistic actions. This includes the giant cooperation of China such as Tencent Holdings, Baiu Inc, and DiDi Chuxing.
The State Administration for Market Regulation (SAMR) stated that it has enforced fines on a few companies for breaching anti-monopoly laws. The regulators have also fined some online shopping companies for this.
The regulators have also introduced an antitrust investigation into the e-commerce giant group Alibaba Group. The financial watchdogs have also investigated the Fintech arm of the Alibaba Ant Group and highlighted major issues with AliPay operators like the violation of companies and regulatory responsibilities.
The meeting also encouraged the online platforms to take necessary steps to protect consumer rights which include privacy of personal data and data security. The conducted meeting called for all sorts of reforms to remove threats to the country’s economy.
