China regulator vows to cut ‘Too big to fail’ risk in innovation

Ant’s $35 billion initial public offering earlier this month was halted due to regulatory pressure.

CHINA'S top banking regulator pledged to lower the risk of companies becoming "too big to fail” in financial innovation, suggesting the nation’s biggest technology companies will face increasing scrutiny on their influence in its financial system.

"Financial innovation shouldn’t form oligopolies, reap excessive returns and harm public interests, ” Xiao Yuanqi, chief risk officer of the China Banking and Insurance Regulatory Commission, said at the Caixin Summit in Beijing on Saturday. Companies should not hide behind innovation to break rules of fair competition to benefit themselves, he said.