Chinese financial regulators conducted a supervision interview on some Internet platforms that engaged in financial businesses to further strengthen the anti-monopoly campaign and prevent the disorderly expansion of capital, according to a statement released by the central bank on Thursday.
The nation’s financial regulators – the People’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission and the State Administration of Foreign Exchange — jointly conducted the interview, which was chaired by Pan Gongsheng, vice-governor of the PBOC.
Representatives of 13 Internet platforms, including Tencent Holdings Ltdand Bytedance Technology, attended the interview, the PBOC’s statement said.
The published statement said some Internet platforms had violated the law, such as providing financial services without licenses or doing business beyond the scope of their licenses, having a non-qualified corporate governance mechanism, engaging in regulatory arbitrage, taking part in unfair competition and damaging the legitimate rights and interests of consumers.
Financial regulators asked these Internet platforms to take rectification measures in seven respects.
The official statement said all financial activities should be included into financial supervision, and financial services must receive licenses before they start businesses.
Payment services should “return to their origin” in order to disconnect the improper link between payment instruments and other financial products, according to the statement. This should strictly control the expansion of non-bank payment accounts, improve transaction transparency and stop unfair competition.
Also stressed were the issuance and trading of asset securitization products, as well the regulation of overseas listings.
“Qualified enterprises should apply to establish financial holding companies according to the law,” the statement read, adding it is forbidden for senior managers and employees of securities and fund management institutions to hold cross posts to ensure the operational independence of the institutions.