More controls on online payments

China plans to tighten regulatory controls on the country's nearly 300 online payment firms, including Alibaba Group Holding Ltd's finance affiliate.

The draft rule, published by the People's Bank of China, the central bank, on Friday, has triggered concerns among the general public as it imposes a cap on the amount that can be spent online via third-party payment platforms.

Industry observers said that rather than making people's life convenient, the draft rule aims to curb online payment companies from providing services that are otherwise provided by financial institutions.