China to Wall Street: Regulatory Crackdown Not Aimed at Restricting Private Firms

A street sign for Wall Street outside the New York Stock Exchange in New York City, N.Y., on July 19, 2021. Andrew Kelly/Reuters

BEIJING/HONG KONG—China’s sweeping regulatory crackdown of recent months does not aim to rein in the country’s private enterprises or decouple from the United States or international financial markets, a top Chinese regulatory official told Wall Street leaders last week.

The actions instead intend to strengthen the regulation of consumer-facing platform companies with a key role in promoting “common prosperity,” or easing wealth inequality, China Securities Regulatory Commission (CSRC) Vice Chairman Fang Xinghai said at a private gathering, according to attendees.