China Xi Jinping calls for stronger fintech oversight, security

• Calls for more control and better security in the sector.
• Which has been hit hard by the regulatory crackdown.
• Chinese tech stocks have seen value wiped off hundreds of billions of dollars in market value.

A high-level China government conference convened by President Xi Jinping has urged more control and better security in financial technology, as the sector has been struck hard by a regulatory crackdown.

Since last year, the government action has battered some of China’s largest technology enterprises, wiping off hundreds of billions of dollars in market value.

But with the Chinese economy hammered by Covid lockdowns, the government has rolled out a series of support measures, including a call for “predictable” tech regulation.

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“Regarding large payment and fintech platform enterprises, Xi called for efforts to improve regulations, strengthen institutional weak links, ensure the security of payment and financial infrastructure, and guard against and defuse potential systemic financial risks,” according to a readout of the Wednesday meeting by the official Xinhua news agency.

The Chinese leader also “called for these enterprises to be better supported in serving the real economy”, Xinhua said.

The officials at the meeting discussed promoting the “healthy development” of fintech companies, it added and said “China will tighten oversight” of financial holding firms and internet financial services.

Investors have been heartened in recent weeks by similar statements by the Chinese government, with some perceiving them as signals that the tech crackdown is finally easing.

Hopes also soared this month when dozens of new video games were approved, and tech stocks rose on reports that authorities were wrapping up a cybersecurity probe into ride-hailing giant Didi.

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But regulators this month denied reports that they were discussing the potential revival of Ant Group’s scuppered IPO, which would have been the world’s largest public offering at the time.

Ant Group, Alibaba’s payments subsidiary, had its public offering halted at the last minute in 2020.

Alibaba was eventually fined $2.75 billion for suspected unfair business practices.

According to Bloomberg News, Ant Group is planning to seek for a financial licence as soon as this month, citing anonymous sources familiar with the situation.