The Premier of the state council of China, Li Keqqiang, announced plans to increase oversight and regulation in the country’s financial and fintech sectors. This comes as an addition to an over 3-year long saga of back and forth between the government regulators and the inscrutable financial sector. The aims are to create an economy that serves the people and the real economy, but in practice, it will very much curb the growing role of technology companies in finance. Giants in Chinese technology, such as Tencent and Ant Group Co., will be particularly hard hit by the new regulations. Microlending restrictions already shook up Ant Groups' initial public offering, placing it on hold. Regulators are also artificially lowering rates on lending and extending repayment timelines for small businesses.
FINSUM + Magnifi: Regulation over the Chinese economy appears to be yo-yo-ing between growth and control over the last two decades. These economic decisions will undoubtedly hurt China’s biggest technology firms but might provide stability and transparency for the growing economy.
Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. As of March 2021, 250,000+ users with $475+ Billion in Assets Under Influence, has used Magnifi over 1,200,000 times. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide brokerage or custody services.]