Xi Calls For Stronger Fintech Oversight, Security

President Xi Jinping has chaired a top-level meeting that approved a plan for the healthy development of China's large payment firms and financial technology sector, state media reported.

Government action has restricted some of China's biggest tech firms, wiping out hundreds of billions of US dollars in market value since last year. But with the Chinese economy hit by Covid, authorities have rolled out a series of support measures.

"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 meeting by Xinhua news agency.

The president "called for these enterprises to be better supported in serving the real economy", Xinhua said, adding China will push large payment firms and fintech platforms to return to their roots, and will look to better coordinate supervision between various regulatory bodies.

Beijing will also strengthen the supervision of financial holding firms and of platform firms participating in financial activities, it added.

Investors have been heartened in recent weeks by similar statements by the Chinese government.

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.

Besides the plan related to payment and fintech firms, the meeting also approved plans on building a basic data system as well as encouraging technology talents, Xinhua said. (AFP/Reuters)