Mobile app Illustration: VCG

Mobile apps run by some of China's largest online payment companies are offering channels that lead users to brokerages to open up their stock trading accounts, in a move that experts say shows the Chinese government's support for the growth of privately-run internet platforms and China's capital market.

Alipay and JD finance apps have begun to offer online access through which users can set up their stock accounts at securities brokerages of their choosing, according to a report by domestic financial news portal 21jingji.com.

Brokerages including Guosen Securities and China Industrial Securities can be found on these channels.

However, services on new channels are being kept low-profile, as industry players wait for new regulations governing business activities by securities firms using third-party internet platforms, according to the report. 

A draft proposal was published in August 2020 soliciting public input but no development has been made since. Revised new regulations may be made public soon, the report said.

The delay of nearly three years were due to concerns linked to compliance, data security, and the fear that related parties may use their advantageous positions to gain illegal profits or distort market order, according to the report.

Liu Dingding, a veteran industry analyst, told the Global Times on Monday that the development comes against the backdrop of China trying its best to develop its economy by boosting the private sector.

"The capital market is closely related to the development of real economy, hence brokerages and apps are seeing more room for development," Liu said.

China's leadership has vowed to unswervingly encourage, support, and guide the development of the private sector in the country.

The annual Central Economic Work Conference, held in December in Beijing, said that the government supports platform companies' business growth, creating jobs, and playing their due role in spearheading international tech competition.

As the Chinese economy stages a rapid recovery in 2023, companies are lining up to float their shares on domestic markets, Liu noted.

A total of 1.67 million investors in China opened accounts to trade stocks at the Shanghai and Shenzhen bourses in February, a jump of 98.48 percent from January, data from China Securities Depository and Clearing Corporation Limited showed on March 17.