Chinese officials meet with Wall Street bosses and push for tight regulation of tech giants

 In a meeting with Wall Street bosses, Chinese regulatory officials insisted on the need for government action against companies from various technology industries. Beijing officials have tried to convince opponents that stricter rules are not intended to harm tech companies and the private sector in general.

Deputy Chairman of the China Securities Regulatory Commission Fang Xinghai 

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said Beijing’s recent moves were aimed at introducing stricter rules for companies that own end-user-oriented platforms and improving the confidentiality of data, as well as to protect national security. Mr. Fan defended the measures against the players in the educational and gaming industry - this was necessary to reduce the degree of tension in the society.

International investors were worried about Beijing's regulatory onslaught against tech giants and other industries, as well as President Xi Jinping's desire to create " common prosperity ." Billions of dollars in potential profits for Wall Street players are at stake and are expanding rapidly in China as the country opens up its financial markets to investment banks and asset and fund managers.

According to sources, the head of the People's Bank of China (Central Bank of China), as well as top managers of Goldman Sachs, Citadel and other influential Wall Street players took part in the three-hour meeting of the US-China "financial round table" last Thursday. For the first time, a meeting in such a format was convened in 2018.

The increased attention to Chinese companies should not be understood as a separation from the United States and international financial markets, Mr. Fan assured the meeting participants. Beijing remains committed to developing the technology sector, he said. As a result of the actions of Chinese regulators, local companies lost $ 1.5 trillion on the stock exchanges - the figure was even higher at the peaks. Last week, Hong Kong-based gaming giant Tencent dropped out of the 10 largest companies in the world by market value - for the first time since 2017, there were no Chinese companies on the list. Alibaba, China's second after Tencent, is down more than 30% this year.

Earlier, the State Council of the People's Republic of China announced that the rules for the placement of assets abroad would be revised, and supervision over companies trading in offshore markets would be strengthened. Beijing officials are also considering tightening control over gray corporate structures, which in some cases allow them to bypass the requirements of local regulators. All of these measures have heightened investor concerns about the widening financial gap between the world's two largest economies.

New York-based investment firm CEO Larry Fink said China needs to ensure long-term government policy consistency - and transparency to build confidence. Mr. Fink, like some other members of the American delegation, also noted the need to create a system of financial protection for the elderly in China, so that citizens receive support after retirement. According to the latest data, the number of Chinese residents aged 60 and above has increased by 47% over the past 10 years and amounted to 260 million, which is more than 18% of the total population. This number is projected to nearly double to 500 million by 2050.

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