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China Rumoured to have Clamped Down on Mobile Payments Project

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Reports that Chinese authorities are clamping down on mobile payment systems saw a listed Chinese bank value slump and its shares suspended on stock exchanges.

Shares in China's CITIC Bank fell by 7 percent on the reports, causing both the Hong Kong and Shanghai stock exchanges to suspend trading. Shares in China's Tencent and the e-commerce giant, Alibaba also fell sharply on the news.

The three companies had just announced an agreement to issue virtual credit cards-based QR code payments. The virtual currency would have allowed consumers to buy goods from online retail websites on credit.

However, reports came out suggesting that the Chinese Central Bank was seeking to ban the service over concerns about the security of the mobile payments.

There has not been an official statement yet though.

The news coincidentally came shortly after the government confirmed that it is working on its own national mobile payments standard.

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Tags: mobile payments  tencent  alibaba  China