China’s Banking Regulator Says Rectification of Online Finance Platforms Still not Over

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The head of China’s banking and insurance regulator says that its campaign to tackle risk in relation to online finance platforms still isn’t finished despite some initial successes.

Guo Shuqing (郭树清), chair of the China Banking and Insurance Regulatory Commission (CBIRC), said that 14 Chinese Internet platforms targeted for rectification by regulators – including fintech giant Ant Group, had “continually made improvements for more than a year,” and that “their overall progress situation is quite successful.”

“The financial operations that these platforms undertake had not been included in our regulation in the past because of their innovative nature,” said Guo at a press conference held by China’s State Council on 2 March.

“At present they are now gradually being included within regulation, and this will involve an ongoing process.”

Guo highlighted the complexity of reforming the online finance operations of these Internet platforms, given that they involve multiple issues including data, personal information and personal privacy protections, as well as enterprise information and confidential commercial information.

“At present their own independent inspections are basically complete, although rectification still isn’t completely finished,” he said.

“There are still some issues that we need to continue to explore, and when new situations arise we will promptly make disclosures to the public and the press.”

Guo said that China “both encourages financial innovation as well as strictly requires legal compliance, fair competition, and the prevention of the disorderly expansion of capital and unfair competition.”