- Fintech subdivisions such as Tencent and ByteDance were present
- Regulators are concerned about the links between payment delivery and finance services.
Chinese entrepreneurs have notified the 13 most prominent technology companies about the need to solve some critical problems. This is a sign that the regularizations on Fintech extend to Jack Ma’s Ant Group. Fintech subdivisions such as Tencent and ByteDance were present at the meeting, extending to the Chica Banks and other entrepreneurs.
Banking regulators were present at the meeting; the Xinhua news agency confirmed all this. The Ant Group company was not invited to the meeting.
Although regulators honored the “positive” development of Fintech in the last decade, businessmen complained about the use of anti-competitive behavior, which caused harm to users. The agents insist that the platforms must increase their activity to 30% in loans they offer with banks. All of this happened after comparable changes were imposed on Anti Group.
The measures were synchronized with the recently issued guidelines for Fintech. Analysts suggest that “these rules exacerbate financing costs for large Fintech companies causing a mismatch in the field.” At the same time, they insist that “small businesses could take advantage of this moment to open up and grow economically.”
Chinese regulators comment that “these improper links between payment delivery and financing services must end.” This includes the halting of aggressive loans by payment websites, an action that eliminates a vital advertising sector for the entrepreneur.
Fintech: Measures requested by Chinese regulators
Agents have also called for more clarity in transactions. Unlike state-owned banks, mobile payment systems like Tencent-owned WeChat don’t share as much data per transaction with the government. Businesses should also order credit reports to avoid data hoarding.
At the moment, only two government agencies are licensed to carry credit reports. It is not yet clear what the conditions will be for the private sector to obtain the license.
Officials demanded that the websites change their risk management in financing when making investments and loans. Shares in the Fintech sector with collaboration from Hong Kong fell last Friday morning. Tencent fell 1.4%, while JD.com and Meltuam fell to 2.8% and 3.1%, respectively.
In conclusion, officials paused Ant Group’s $ 37 billion public offerings. If completed, this would be a historical price due to its magnitude. Jack Ma, the company’s CEO, disappeared after this news for fear of criticism.
Beijing seems to be on the lookout for movements in Fintech to regularize companies that do not comply with the rules. Alipay and WeChat Pay are Ant Group payment apps originally launched to buy goods but now function as a loan system.