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MNI BRIEF: China Regulator Warns About 'Too Big To Fail' Tech

BEIJING (MNI)

China will watch out for "too big to fail" technology companies as some firms have become dominant in the small-amounts digital payment market but they also operate in other financial and technology sectors, which may bring systemic risk, said Chairman Guo Shuqing of the China Banking and Insurance Regulatory Commission on Tuesday.

Guo's comments at the 2020 Singapore Fintech Festival are the latest sign of the regulator's determination to strengthen its grip over technology companies' financial operations. Last month, the government halted the IPO of Alibaba's financial arm, Ant Financial, concerned by its loans businesses.

Guo also called on countries, including China, to clarify data ownership since data is a factor in production, like labour, capital and technology. Countries should also promote a mechanism for data transmission and pricing, Guo added.

MNI Singapore Bureau | +65 9 632 1991 | sumathi.vaidyanathan.ext@marketnews.com
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MNI Singapore Bureau | +65 9 632 1991 | sumathi.vaidyanathan.ext@marketnews.com
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