In the latest move to tighten China’s fintech industry, an ex-finance minister suggested a cap on the number of bank partnerships allowed.
China’s former finance minister Lou Jiwei made the comments to finch’s financial reach during a recent forum, according to a report from state-owned «Securities Times».
Lou cited risks from trillions of yuan in loans created by an actual platform he did not name, adding that bad debt could rise if there is too much concentrated control from any one platform.
«Winner-takes-all» and «too-big-to-fail» situations need to be prevented, the report added.
Fintech Tightening
Despite rapidly growing fintech growth worldwide, China has opted to rein in on domestic industry leaders, most notably Ant Group, whose chairman Eric Jing recently said vowed to align the business with Beijing’s plans following an IPO pullout and an extensive regulatory review.
«Recently, we at Ant Group have spared no effort in studying the 14th Five-Year Plan, and the government’s policy insights into financial security and financial stability,» Jing said.
