China’s regulators order all local firms to investigate their fintechs

China’s banking and insurance regulator ordered all internet-based platforms in the country to investigate their fintech-related businesses to ensure regulatory guidelines were being followed, according to a report in

The CBIRC requested local platforms to conduct an internal investigation if they were involved with online micro-lending, wealth management and trusts business activities to ensure regulations were being followed.

The interest in having fintechs adhere to regulations was highlighted in November 2020, when Chinese financial regulators met with Alibaba’s fintech unit the Ant Group regarding the need to address compliance requirements. At that time the regulators ordered the Ant Group to postpone its highly anticipated $37 billion potential IPO in Shanghai and Hong Kong, which would have made it the world’s largest IPO. Since Ant’s IPO was put on hold, Chinese regulators have increased their scrutiny of fintechs.