[Pan Gongsheng, Deputy Governor of the People’s Bank of China, answers reporters’ questions about the financial management department’s re-interview with Ant Group] On April 12, 2021, the People’s Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, Foreign Exchange Bureau and other financial management departments jointly interviewed Ant Group again . Pan Gongsheng, deputy governor of the People’s Bank of China, answered questions from reporters on the interview on behalf of the four departments.
Q: What are the considerations for the financial management department to discuss the Ant Group again?
Answer: The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China, the Central Economic Work Conference and the Ninth Meeting of the Central Finance and Economics Committee clearly stated that it is necessary to strengthen anti-monopoly and prevent the disorderly expansion of capital, and effectively prevent risks. Proceed from the strategic height of building a new competitive advantage of the country, establish and improve the platform economic governance system, and promote the healthy and sustainable development of the platform economy.
Since the four-sector joint supervision interview in December last year, Ant Group has established a dedicated team to formulate a rectification plan under the guidance of the financial management department and actively carry out rectification work. This time, the financial management department once again jointly interviewed relevant personnel of Ant Group, mainly to require Ant Group to face up to the serious problems in financial business activities and the seriousness of the rectification work, to benchmark the regulatory requirements and the proposed rectification plan, and to conduct in-depth and effective rectification. To ensure the realization of lawful operation, upright innovation, and healthy development; we must adhere to the original source of serving the real economy and the people, actively respond to the national development strategy, and increase financial technology innovation on the premise of meeting the requirements of prudential supervision, and enhance international competition in the field of financial technology It will play a greater role in building a new development pattern of “dual cycles”.
Q: What is the main content of Ant Group’s rectification plan?
Answer: Since the start of the rectification work of Ant Group, the financial management department has conducted in-depth communication with Ant Group on rectification measures and urged Ant Group to form a comprehensive and feasible rectification plan.
The rectification content mainly includes five aspects: First, correct unfair competition behavior in the payment business, give consumers more choices in payment methods, and disconnect the improper connection between Alipay and other financial products such as “Huabei” and “Bibai”. Rectify irregularities such as nesting credit business in the payment link. The second is to break the information monopoly, strictly implement the requirements of the “Credit Investigation Industry Management Regulations”, operate personal credit investigation services with a license in accordance with the law, collect and use personal information in accordance with the principle of “lawfulness, minimum, and necessity” to ensure personal and national information security. The third is that Ant Group has applied for the establishment of a financial holding company as a whole, and all institutions engaged in financial activities are included in the financial holding company to accept supervision, improve risk isolation measures, and standardize related transactions. Fourth, strictly implement the requirements of prudential supervision, improve corporate governance, earnestly rectify financial activities such as illegal credit, insurance, and wealth management, and control high leverage and risk contagion. Fifth, the liquidity risk of important fund products was controlled and the balance of Yu’e Bao was actively reduced.
The financial management department will urge Ant Group to effectively implement the rectification plan, grasp the pace of work, maintain business continuity and normal business operations, ensure that the broad masses of people’s experience of financial services does not decline, and continue to improve the level of inclusive financial services.
Q: In the next step, how can the financial management department strengthen the financial supervision of platform enterprises?
Answer: The financial management department will adhere to the principles of fair supervision and strict supervision, focus on the long-term, take into account the current situation, make up for shortcomings, strengthen weaknesses, promote fair competition, oppose monopoly, and prevent the disorderly expansion of capital. The first is to adhere to “finance-oriented, technology-enabled”. Platform companies should focus on serving the real economy and preventing financial risks when carrying out financial business, and should not make technology a “protective color” for violations of laws and regulations. Regarding business violations, strictly investigate and deal with in accordance with law. The second is to insist that all financial activities be included in financial supervision. Financial business must be licensed to operate; enhance regulatory capabilities and levels, optimize regulatory frameworks, and prevent regulatory arbitrage. The third is to adhere to both development and standardization. Strengthen supervision in accordance with the law, standardize market order, prevent market monopoly, protect data property rights and personal privacy; at the same time, grasp the laws of platform economic development, improve financial service experience, and consolidate and enhance the international competitiveness of platform enterprises.
The financial management department will continue to adhere to the “two unshakable”, create a fair and competitive market environment, continue to support private capital to carry out financial technology activities in accordance with the law, protect property rights in accordance with the law, promote entrepreneurship, and stimulate the market vitality and technological innovation capabilities of private capital .
Q: What are the considerations of China’s financial management departments in strengthening international financial technology supervision cooperation?
Answer: In recent years, the rapid development of financial technology and platform economy has played an important role in improving the efficiency of financial services, the inclusiveness of the financial system, and reducing transaction costs. At the same time, due to its characteristics of cross-border, mixed-industry, and cross-regional operation, the risk contagion speed is faster, the spread is wider, and the negative spillover effect is stronger. It poses new challenges to financial supervision and has become the common face of supervisors of all countries in the world. New problem.
The regulatory authorities of the world’s major economies have paid great attention to this and have taken practical actions to make regulatory adjustments and policy responses. In terms of regulatory concepts, follow the principle of “same business, same regulation”, and strive to strike a balance between promoting the development of financial technology and preventing financial risks. In terms of supervision methods, explore the use of big data, cloud computing, artificial intelligence and other scientific and technological achievements to improve risk monitoring and perception capabilities and penetrating supervision capabilities. In terms of regulatory content, it emphasizes the protection of personal information and anti-monopoly. For example, the European Union implemented the General Data Protection Regulation in 2018 and accelerated the advancement of the Data Governance Act; the United States has successively initiated antitrust investigations against large technology companies in recent years; Germany passed the tenth “Anti-Restriction of Competition Act” in 2020 Amendments and so on.
China’s financial management department is willing to further strengthen cooperation with international financial organizations and regulatory authorities of various countries in anti-monopoly, data supervision, operation management, consumer protection, etc., promote the formulation of financial technology regulatory standards, strengthen regulatory coordination, and jointly create an open, inclusive, and A safe financial technology ecological environment enhances the innovation capability of the financial industry, while preventing cross-border regulatory arbitrage and cross-border contagion of financial risks.