Daily Management Review

Chinese watchdogs order corporations to bring financial services in line with law


Chinese authorities have demanded that the country's 13 IT corporations make changes to their financial services business, The Wall Street Journal reports. Watchdogs have deemed their services risky and in violation of the country's antitrust laws.

China's central bank, along with the country's banking, insurance, stock exchange and currency regulators, ordered companies to unbundle their payment systems from certain financial products. 

The authorities also demanded that companies bring their online lending and deposit-taking businesses into compliance with regulatory requirements. Tencent Holdings, ByteDance, Didi Chuxing, Meituan and JD.com, among others, have come under pressure from the authorities.

Earlier this month, Chinese authorities issued an ultimatum to 34 of the country's leading high-tech companies, demanding that they eliminate "anti-competitive practices" within a month to avoid "a repeat of the Alibaba situation". 

In early April, the regulator levied a record fine of 18.22 billion yuan ($2.78 billion) against Alibaba for violating antitrust laws. And on April 12, the People's Bank of China announced that it had ordered a major restructuring of Alibaba-controlled Ant Group.

source: wsj.com