Fintech—China—Q&A guide

The following TMT practice note provides comprehensive and up to date legal information covering:

  • Fintech—China—Q&A guide
  • 1. What is the general state of fintech innovation in your jurisdiction?
  • 2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?
  • 3. Which bodies regulate the provision of fintech products and services?
  • 4. Which activities trigger a licensing requirement in your jurisdiction?
  • 5. Is consumer lending regulated in your jurisdiction?
  • 6. Are there restrictions on trading loans in the secondary market in your jurisdiction?
  • 7. Describe the regulatory regime for collective investment schemes and whether fintech companies providing alternative finance products or services would fall within its scope.
  • 8. Are managers of alternative investment funds regulated?
  • 9. Describe any specific regulation of peer-to-peer or marketplace lending in your jurisdiction.
  • More...

Fintech—China—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to fintech in China published as part of the Lexology Getting the Deal Through series by Law Business Research (published: May 2020).

Authors: Simmons & Simmons LLP—Jingyuan Shi

1. What is the general state of fintech innovation in your jurisdiction?

China’s reputation as a global leader in fintech innovation continues to grow, and fintech companies in China have particular expertise in areas such as payments, AI, blockchain and digital currency. Going forward, we expect fintech innovation in China to play a substantial role in the development of the entire financial services industry. The Chinese government actively encourages innovation by fintech companies. However, the fintech sector remains highly regulated and this seem unlikely to change. In fact, it is possible that fintech companies may be subject to greater regulatory supervision in the future, especially where they carry out business related to peer-to-peer online lending, blockchain-based currency, online insurance, the centralised storage of deposits in payments sectors, cybersecurity and data protection.

2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?

In August 2019, the People's Bank of China (PBOC) issued the Fintech Development Plan (2019–2021) (the Fintech Plan), which calls for strengthening the strategic deployment of fintech and the rational use of financial technology. The Fintech Plan outlines

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