13 Chinese Technology Companies Called Into Meeting for Rectification

Tencent, ByteDance, Baidu, JD.com, Meituan and Didi's fintech arm have been called into a meeting with officials from the central bank.
Benjamin WangMay 04,2021,20:40

China's financial regulatory authorities called 13 Chinese technology companies, including Tencent and ByteDance into a meeting with officals from the central bank as well as the banking and foreign exchange regulators., reported Reuters.

Tencent, ByteDance, Baidu, JD.com, Meituan and Didi's fintech arm are among the companies have been called into the meeting.

Authorities in China proposd seven requirements on these companies similar to the five requirements already imposed on Ant Group. Additional requirements include regulating the issuance and trading of asset securitization products by enterprises as well as requirements regarding overseas listings.

Spokespersons of Lufax said that although some enterprises may experience pains in the short term, in the long term these companies can avoid detours and mistakes, one of benefits of supporting the healthy development of the industry.

“Companies should study the regulatory guidance as early as possible and make rectification as soon as possible,” said a Lufax spokesperson.

Before the meeting, Reuters reported in April that Didi had commissioned Goldman Sachs and Morgan Stanley to arrange the initial public offering in New York.

Bytedance, which has been licensed for payment and online loan last year, announced a few days ago that it is not qualified to be listed and has no plan to be listed at present. Before the meeting, the company had started its IPO process in Hong Kong.

The meeting will suppress the expansion of these companies’ fintech-related businesses, resulting in a lower growth rate, according to Zhongtai Securities.

Topics:China; U.S.