Chinese central bank officials step up technological crackdowns

China politics and policy updates

The People’s Bank of China has urged further “rectification” of China’s financial technology industry, which has put greater pressure on technology groups surrounded by increased regulatory scrutiny.

In the context of increasing headwinds faced by Chinese technology groups, the stock market and foreign investors in the world’s second largest economy, Beijing issued the latest warning, but did not name any companies.

Billionaire Jack Ma’s fintech Ant Group, China’s largest ride-hailing app Didi Chuxing and $100 billion Tutoring industry Has become the target of a snowball-like regulatory crackdown, which may involve other technology groups including Tencent.Takeaway platforms Meituan and Jack Ma’s e-commerce business Alibaba has been affected by Antitrust investigation.

The People’s Bank of China calls on fintech companies to improve competition and consumer rights, because it shows that the supervision of fintech is stricter Illegal cryptocurrency activities At the same time, it is actively promoting its own development digital renminbi, According to a statement released on Saturday.

Investors are working for Long-term uncertaintyAt a high-level meeting chaired by Chinese President Xi Jinping, the authorities promised on Friday Tighter control Selling shares overseas for Chinese companies. the same day, U.S. regulators said The China-based group will have to disclose more about its structure and connections with the Beijing government.

Although there are signs that the Chinese economy is facing an uneven economic recovery from the coronavirus pandemic, the People’s Bank of China has vowed not to take “flood-like” stimulus measures and to ensure the stability of monetary policy.

The news from Beijing’s central bank officials is an important indicator of the health of China’s manufacturing industry, reflecting that the slowdown in July was worse than expected.

China’s official purchasing managers’ index fell from 50.9 in June to 50.4 last month, reflecting the impact of rising inflationary pressures, slower export growth, and extreme flooding in parts of the country.

Although the index is above the 50-point mark that distinguishes expansion from contraction, July was the lowest reading since February 2020, when China was hit by a total blockade.

Goldman Sachs analysts had predicted a growth of 50.7, pointing out that China’s new export orders sub-index fell from 48.1 last month to 47.7 in July, the lowest level since June last year.

What followed was a slowdown in Chinese factory activity Beijing’s warning According to the report, in the three months to June, GDP grew by 1.3% month-on-month, indicating an uneven economic recovery.

Complicating China’s outlook is that health officials are struggling to deal with the spread of the coronavirus outbreak from Nanjing, the capital of Jiangsu Province in the eastern province, and seven other provinces have reported cases of local transmission. The National Health Commission of China stated in its latest update that there are 53 new locally transmitted cases.

Supplementary Reporting by Sun Yu in Beijing

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