BEIJING (Reuters) – Ant Group will see results if the company follows the legal processes following the suspension of its initial public offering, according to China’s central bank governor Yi Gang.
Beijing has signalled that it wants to strengthen its oversight, particularly of technology firms looking to expand into the financial space, a reversal of its once laissez-faire approach.
The drive has spotlighted Alibaba’s fintech affiliate, Ant Group, whose record $37 billion listing was halted by Beijing in early November, with its executives called into meetings and told to expect more regulation.
“I’d say that you just follow the standard of legal instruction, you will have the result,” Yi said on Tuesday, speaking at a virtual meeting of the World Economic Forum.
Regulatory authorities are working to strike a delicate balance in their effort to fend off risk without discouraging innovation.
The legal framework for financial innovation has to be very clear, he also said, speaking in English.
(Reporting by Lusha Zhang and Kevin Yao; Additional writing by Ryan Woo; editing by Louise Heavens)