PBOC suspends use of virtual credit cards

China's central bank hit the brakes on burgeoning virtual credit card services and barcode-based mobile payments as competition for the country's Internet finance services becomes cutthroat.

The move, made just two days after major Internet companies launched such services, has sent the shares of the relevant companies tumbling amid concerns that regulatory supervision may tighten in favor of the mammoth State-owned financial institutions.

The People's Bank of China issued a statement on Friday that halted virtual credit card products and face-to-face payment services, including QR code payments, ruling that this line of business was too risky.