The head of one of China’s leading think tanks has warned of the broader risk implications posed by the rapid growth of the country’s fintech sector.
Addressing the 2019 Financial Street Forum (2019金融街论坛年会) in Beijing Li Yang (李扬), director of the National Institution for Finance and Development (国家金融与发展实验室) said that in his personal observation “fintech presents a type of generalised hazard.”
“I feel that fintech is already on the ascent in China, but we cannot let it go down the same path as the online finance sector did several years ago.”
“We must especially stress that in our development of fintech, we must resolve real problems, and cannot allow bubbles to form.
“You must be able to resolve the problem of information asymmetries, you must be able to upgrade the credit foundations of the entire financial sector, you must be able to provide to regulatory authorities the flows and tracks of various economic activities, you must have the ability to enable all participants in the financial sector to express their own preferences in an extremely accurate and timely manner…finally, you must be able to reduce the cost of financial services.”