New Rules:China Clamps Down on Internet Financial Sector

#China #CBIRC #banking #internet #regulators #consumers #Alibaba


China will borrow the play-book of foreign countries and step up anti-monopoly scrutiny in the financial sector to protect the interests of consumers, a senior official at the country’s Top banking watchdog said.

The remarks by Liang Tao, Vice Chairman of the China Banking and Insurance Regulatory Commission (CBIRC), came a day after China published draft rules aimed at preventing monopolistic behavior by internet platforms, focused on e-Commerce sites and payment services at the likes of Alibaba Group (NYSE:BABA).

They came just after a shock suspension last week of the planned $37-B share listing of Ant Group, an Alibaba affiliate, not long after regulators warned the company its lucrative online lending business faced tighter government scrutiny.

We will pay close attention especially to risks including cybersecurity, data security and market monopoly behavior,” he said.

China’s Financial Stability and Development Committee (CBIRC) ia a cabinet-level body headed by Vice Premier Liu He and last month it flagged the need to improve mechanisms to ensure fair competition and called for the strengthening of anti-monopoly law enforcement. Which it did when it suspended the Ant, Inc. IPO.

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