China’s central bankers heat up technology crackdown

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China’s central bank is putting more pressure on the besieged technology group by encouraging further “correction” of the country’s fintech sector and tightening regulatory scrutiny.

The latest warning from Beijing, which did not appoint a company, is against the backdrop of increasing headwinds for China’s technology groups, stock markets and foreign investors in the world’s second-largest economy.

Billionaire Jack Ma FinTech Ant Group, China’s Largest Riding App Didi Chuxing, $ 100 Billion Tutor industry It is the target of a snowball-style crackdown that could involve other tech groups, including Tencent.Delivery platform Meituan and Ma’s e-commerce business Alibaba Antitrust investigation..

The People’s Bank of China has called on fintech companies to improve competition and consumer rights. Illegal cryptocurrency activity Also, while pushing forward with its own efforts to develop Digital yuanAccording to a statement released on Saturday.

Investors Long-term uncertainty..At the meeting Xi Jinping Zemin is of top-level chair of China, authorities promised on Friday More powerful control For Chinese companies that sell stocks overseas. same day, U.S. regulators said China-based groups will have to disclose more about their structure and contact with the Beijing government.

Despite signs that the Chinese economy is facing a heterogeneous recovery from the coronavirus pandemic, the PBOC has pledged to refrain from “flood-like” stimuli as it has promised monetary policy stability.

A message from Beijing’s central bankers came from reflecting an important indicator of China’s manufacturing health that was worse than expected in July.

China’s Official Purchasing Managers Index fell from 50.9 in June last month to 50.4, reflecting the effects of rising inflationary pressures, slowing export growth and extreme floods in parts of the country.

The index was above the 50-point marker that separates expansion and contraction, but July hit a record low since February 2020, when China was hit by a rigorous blockade.

Goldman Sachs analysts expected growth of 50.7, but said China’s new export order subindex fell from 48.1 last month to 47.7 in July, the lowest since June last year. rice field.

After that, factory activities in China slowed down Beijing warning An imbalanced economic recovery was seen when we reported quarterly GDP growth of 1.3% in the three months to June.

Complicating China’s outlook is that health officials are working on an outbreak of the coronavirus that has spread from Nanjing, the capital of eastern Jiangsu, and cases of infection have been reported in seven other states. .. China’s National Health Commission said in the latest update that there were 53 new cases of community outbreaks.

Additional report by Sun Yu in Beijing

China’s central bankers heat up technology crackdown

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