What’s new: China’s central bank will adopt normalized supervision of internet platform companies’ financial activities and will support the sector’s healthy development, the People’s Bank of China (PBOC) said, backing up recent remarks from top policymakers signaling an easing of the year-long tech sector crackdown.
The PBOC will promote completion of a special rectification of platform companies’ financial businesses, introduce normalized supervision and bolster the sector’s healthy development, the central bank said in a statement published Wednesday on its official website.
The central bank vowed to implement policies announced after last week’s Politburo meeting to provide financial support to stabilize the economy. The PBOC said it will optimize credit policies for the real estate sector, strengthen financial support for technology innovation and expand credit access to small and micro enterprises. Policies that have been put in place should be implemented faster, the bank said.
Why it matters: The central bank’s statement reinforced the pro-growth message sent by the Politburo last week offering relief to the tech sector.
The top decision-making body pledged at an April 29 meeting to promote healthy development of the platform economy and implement normalized supervision of the industry.
Analysts said it indicates the year-long crackdown on big tech is moving toward an end, and supervision of the industry will become more transparent and predictable.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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