China has recently announced that it will adopt a new, “positive and prudent” approach towards the speedy growth of the financial technology sector. This initiative would help to observe “too big to fail” cases in the industry.
As explained by Guo Shuqing, Chinese banker and politician – “Some big techs operate a cross-sector business with financial and technology activities under one roof.” Thus, the Chinese government believes it is necessary to keep a close look over the spillover of the complicated risks – while taking timely measures to prevent such systematic risks.
The financial regulators are tightening their grip over the tech companies and strengthening their oversight with revised rules. This is valid for micro-lending and anti-monopoly behavior.