China’s top anti-graft body called for «no mercy» against corruption, vowing to curb the influence of technology companies by severing «ties between power and capital».
Investors of China’s tech sector could face more uncertainty ahead as Beijing signals an extension to a crackdown that has already erased more than $1 trillion in market value last year.
«Efforts will be made to investigate and punish corrupt behaviors behind the disorderly expansion of capital and platform monopolies, and cut off the link between power and capital,» the Central Commission for Discipline Inspection said in the statement following its plenary session.
«Show no mercy to those who engage in political gangs, small circles, and interest groups within the party, and strictly educate, manage and supervise young cadres.»
Continued Crackdown
Meanwhile, major tech firms in China continue to be the subject of negative headlines with regards to regulatory tightening especially with regards to financial activities.
Earlier this month, China’s securities regulator published draft rules to tighten scrutiny over money market funds with large assets or a large number of investors.
The move will notably affect Yu’e Bao, the country’s largest money market fund which is controlled by Ant Group.
And just this week, «Reuters» report citing unnamed sources said that Chinese authorities were drafting new rules that would require large internet firms to seek approval before making investments or raising funds, though the Cyberspace Administration of China denied the claims.
