China Should Differentiate Regulation on Fintech Firms：Former PBC Official
Source: Global Times
Differentiated supervision measures should be implemented for the fintech sector in China according to levels of platform and technology companies, as well as the magnitude of the risk and who bears it, Wu Xiaoling, former vice governor of the People's Bank of China (PBC), the central bank, told reporters on Wednesday, according to media reports.
Wu said that platform, data and technology firms may be more efficient or more cost-effective than traditional financial institutions in some aspects. In theory, it is possible for them to enjoy relatively loose regulatory conditions, domestic news site cailianshe reported on Wednesday.
Wu added that "suitable" supervision methods are needed, and when it comes to models of cooperation, personal data protection and preventing monopolies between technology companies and financial institutions, further in-depth study is needed, cailianshe reported.
The China Banking and Insurance Regulatory Commission (CBIRC) recently warned of a new type of too-big-to-fail financial risk, and it stepped up efforts to overhaul laws and regulations related to the domestic fintech industry, which has been booming and leading the world in innovations.
The remarks followed the suspension of a high-profile dual listing by Ant Group.
In a speech to the Singapore FinTech festival 2020, CBIRC Chairman Guo Shuqing said that some technology firms now dominate the micropayment market, which involves the public's interest, and this makes the sector characteristic of the nation's critical financial infrastructure.
Major technology companies in China, meanwhile, are involved in various financial and technology businesses while also undertaking cross-sector mixed operations, according to Guo, who urged attention be paid to the complexity and possible spillover of risks from these institutions.
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