Regulate platform economy development with ratcheted-up supervision: Economic Daily
The decision of China's financial watchdogs to hold regulatory talks again with Ant Group in coming days indicates regulators' determination to strengthen supervision and ensure healthy development of the platform economy, Chinese newspaper Economic Daily said in a commentary on Thursday.
The People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange are set to join talks with the company.
In early November, the same batch of Chinese regulatory bodies summoned Ant Group's founder Jack Ma and top executives, days before the fintech tycoon's whopping dual listing in Shanghai and Hong Kong.
Two regulatory talks within two months spell out in sharp detail that it's the crunch time to regulate the platform economy and once again demonstrated regulatory authorities' serious approach and firm determination to beef up supervision and spur its healthy development.
Over the years, the online platform economy has been moving ahead on the fast lane.
Although the new growth drivers backed by the fast-expanding internet sector innovates the scenarios for production and life, it bears problems such as disorderly expansion, leakage of personal privacy, and damage to the rights of small- and medium-sized enterprises and consumers.
Enhancing supervision via regulatory talks is to urge and guide platform companies to implement financial supervision, fair competition, and protect consumers' legitimate rights and interests in accordance with market-driven and law-based principles, and to regulate financial business operations and development.
The just-concluded annual Central Economic Work Conference pointed out that it is indispensable to strengthen anti-monopoly and prevent the disorderly expansion of capital. This is an inherent requirement for improving the socialist market economic system and promoting high-quality development.
The development of fintech platforms is in the ascendant, and prudent supervision will help these platform companies to go further and change for the better. The regulatory tasks are to supervise and guide enterprises to step up rectification and reform so as to improve governance and promote healthy development.
Only when platform companies develop steadily on a standardized and orderly track, respect regulatory rules and maintain innovative vitality can they form true core competitiveness, achieve win-win results for the country, enterprises and consumers, and make positive contributions to the country's high-quality economic development.