The Chinese central government has unveiled plans to create a fintech risk control centre in Beijing, highlighting greater concern with financial risk as a national security issue.
On 7 September the State Council announced the approval of the “Work Plan for Deepening Beijing’s New Round of Services Sector Expanded Opening Comprehensive Trials and Establishment of a State Services Sector Expanded Opening Comprehensive Demonstration Zone” (深化北京市新一轮服务业扩大开放综合试点建设国家服务业扩大开放综合示范区工作方案).
The Plan includes a total of 26 “key missions,” a significant number of which directly pertain to the Chinese financial and fintech sectors including:
- The creation of a “fintech innovation demonstration zone” that revolves around Beijing’s Financial Street, the state-level Fintech Demonstration Zone and the Lize Financial Business District.
- The establishment of a state fintech risk control centre;
- Strengthening reform and innovation in the financial services sector;
- Driving the convenience of cross-border fund flows.
He Haifeng (何海峰), chair of the Financial Policy Research Centre of the Chinese Academy of Social Sciences (CASS), highlighted the establishment of a fintech risk control centre in Beijing as both a timely and necessary measure.
“Beijing is the financial regulatory centre of the state, and the most important aspect of financial regulation is the regulation of risk, which in future will be to a large extent closely tied to fintech activities” said He.
“This elevates the regulation of financial risk to the level of national financial security, and is the biggest bright spot of the Plan in the area of finance.”