The regulators, which include the People’s
Regulators warned against the “disorderly expansion” of capital, part of the government's increased scrutiny of technology and internet companies that have branched into the lucrative financial services sector, offering services such as digital wallets, wealth management services and loans.
To help curb risks to China’s financial system,
As part of their crackdown on online financial services, last year authorities abruptly halted a
The statement by regulators acknowledged that online companies have contributed to improving financial services and making them more inclusive. But it said some companies are unlicensed and some engage in unfair competition and damage consumers’ legal rights.
“The online platform companies being summoned run integrated businesses on a large-scale and are influential in the sector and face typical problems. They must take the lead in seriously correcting these problems,” the statement said.
The companies were told to carry out self-inspections and rectify any problems in line with financial regulations. Financial businesses must have licenses to operate, and the expansion of payment accounts not linked to banks must be strictly controlled, the statement said.
Companies were ordered to break the information monopoly. Personal credit reporting should be done only by licensed credit reporting agencies, it said.
In April, e-commerce platform
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