China’s main financial regulator said this week that it expects significant progress in the ongoing investigation of Chinese fintech companies before the end of 2021, which could indicate that the raid is coming to an end.
According to Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, the authorities have uncovered more than a thousand problems with the fintech activities of 14 internet platforms. As Shuqing told CCTV state broadcaster, all of the companies under investigation responded positively to the findings, and nearly half of the changes proposed by regulators have been implemented so far.
Shuqing expects “even more significant progress” by the end of the year. However, the official noted that unfair competition persists in some areas of the Chinese financial sector. He said that Beijing has zero tolerance for illegal financial activities and will continue to apply strict regulations to free the financial sector from monopolies.
Some experts tend to view these statements as another sign. that the nearly one-year study of the Chinese fintech sector is coming to an end. Investors have been buying more and more Chinese technology shares in recent weeks after regulators imposed a relatively small amount of fines on food giant Meituan earlier this month. The company was investigated for alleged monopolistic practices
This week’s Dow Jones report also indicated that the Beijing Cyber Security Agency is completing an investigation against the freight distribution company Didi Global. Following the news, the Nasdaq Golden Dragon China Index, which tracks Chinese stocks listed on the U.S. stock market, traded high in October and is preparing for the best month of the past year. The campaign covers a wide range of areas and instruments, from bans on companies’ use of data, the elimination of false product ratings and the prevention of unfair competition on the Internet to multiple investigations into the largest Chinese fintech companies for “alleged monopolistic practices”.
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