Chinese officials have told 13 of the country’s top companies to “fix major problems” on their platforms, a sign that the pressure on the fintech system is spreading beyond the Jack Ma Ant team.
Tencent, ByteDance and Fidech affiliates BaD, JD.com, Meituan and Didi were among those invited to a meeting with officials from the People’s Bank of China and other banks, security and foreign exchange regulators, according to state news agency Xinhua. .
Ants’ group, which was ordered repairs this month, he was not invited.
Acknowledging all the “good” development of fintech in recent years, developers have complained about anti-consumer tactics.
Officials want the platforms to increase their funding to meet 30% of the loans they offer along with banks, having completely replaced the ants. These measures were consistent with recent instructions has been distributed to the entire fintech segment.
Researchers have warned that the regulations will raise money for major fintech companies and lead to a significant reduction in activity. But he also added that other young players can have a lot of fun opportunity to expand.
“Inappropriate links” between paid jobs and other financial services should be broken, the regulators said. This included not allowing pay-per-view platforms to crack down on debt, cutting off key marketing channels for companies.
Authorities also demand that the situation be improved. Unlike a state-owned bank, mobile payment sites such as Tencent’s WeChat Pay, Ant’s main competitor, share a little less with the government.
Companies are also required to apply for a reduction in their debt in order to “pay the fine”. Only two state-owned enterprises have such licenses, and it is unclear what the government may require from private companies to issue such licenses.
Managers also want the platforms to support risk management in debt and finance.
Shares from Chinese manufacturing groups doing business in Hong Kong fell on Friday morning. Meituan is down 3.1%, Tencent 1.4% and JD.com 2.8%.
Authorities stopped Last year Ant Group planned a $ 37bn collective contribution, which would be the largest in the world. Jack Ma, the founder of ants and one of China’s most famous businesses, has been missing since the list went down.
Beijing now seems to be I review to other Chinese arms manufacturing companies, which are increasingly making money.
WeChat Pay and Alipay, Ant’s payment program, were developed as a way for consumers to purchase goods and services, but have evolved into a platform for credit, cash and insurance.
JD.com, an online retailer, is also in debt to consumers, while public transport company Didi launched a massive cash loan and lease in 2019.