Chinese Central Bank Flags Heightened Regulation of Fintech Innovations

A senior official from the People’s Bank of China (PBOC) has outlined plans to optimise the regulation of the Chinese fintech sector.

Chen Yulu (陈雨露), PBOC vice-governor, said that China’s fintech development is currently “imbalanced,” while there is still considerable room for progress in the area of digital financial inclusion.

Chen made the remarks at the Chengfang Fintech Forum (成方金融科技论坛) recently held in Beijing by the Beijing Financial Street Services Authority.

The PBOC vice-governor highlighted four key work areas for China’s fintech regulatory work in future:

1. Improve the high-quality supply of fintech. Use 5G and other technologies to expand the reach of services, and enable the masses in rural and remote areas to enjoy high-quality financial services, to achieve true “digital financial inclusion.
2. Guide the standardised application of new technologies. According to Chen the financial sector must remain “sensitive and alert” to technological innovations.
3. A regulatory model which is accommodating and prudent, and optimises financial innovation. PBOC will “explore the establishment of fintech innovation regulatory mechanisms, continually upgrade the regulatory tool kit, and establish innovation regulatory procedures encompassing public announcements, filing, independent announcements and user notifications.”
4. Comprehensive upgrade of digitised regulatory capability. PBOC will “arrange for the financial sector to establish dynamic risk monitoring systems; strengthen joint prevention and joint control of risk, and comprehensively upgrade financial risk prevention capability.”

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