China to require non-bank payment firms to set up bank accounts for fund product transactions

FILE PHOTO: An Alipay sign at the payments company's Shanghai office

FILE PHOTO: An Alipay sign at the Shanghai office of Alipay, owned by Ant Group, an affiliate of Chinese e-commerce giant Alibaba, in Shanghai, China, September 14, 2020. REUTERS/Aly Song

January 25, 2021

BEIJING (Reuters) – China’s central bank said Friday it will require non-bank payment institutions, with Ant Group’s Alipay as the leading player, to set up bank accounts to deal with fund product transactions for customers.

In a set of new rules to take effect from March 1, non-bank payment institutions will also be required to set up separate banking accounts for cross-border yuan payments and foreign currency exchanges, according to a statement on the website of the People’s Bank of China (PBOC).

(Reporting by Zhang Yan, Cheng Leng, and Ryan Woo)

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