China Punctuates More Market Freedoms With Tough Crackdowns
- Scrutiny of the fintech and internet industries is picking up
- Beijing is paring back controls of its stocks, bonds and yuan
Photographer: Qilai Shen/Bloomberg
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China’s loosening of control over capital markets is being accompanied by tougher oversight of companies that previously faced little regulation.
Under President Xi Jinping, authorities appear keen to push ahead with reforms to give markets greater sway. The measures will encourage inflows while making the economy leaner and more efficient, thus strengthening the country against a more hostile world. But greater opening also makes it more likely investors will pile into a small number of very profitable companies, mostly in the private sector. Such clustering could create imbalances in the financial system, as well as make some companies too powerful.