Chinese Government Declares FinTech Development Plan

The Chinese Government has announced a development plan to reform the country’s financial sector by vastly improving the information technology infrastructure for the Chinese financial services industry.

According to Chinese officials, “information technology continues to drive financial innovation,” and thus, in order to advance to an “international leading level,” a complete overhaul of the country’s financial services IT infrastructure is vital. The Chinese Government intends to "reinforce the foundation, strengthen security, support innovation, deepen the standard, [and] improve governance" by implementing five key tasks, which include:

  1. Improving the financial information infrastructure;
  2. Improving network security protection;
  3. Promoting new technologies for financial innovation and development;
  4. Deepening the financial standardization strategy; and
  5. Optimizing the IT management system in order to “enhance the level of information technology services.”

The announcement could be a response to suggestions coming from Hong Kong. In early June, Hong Kong Monetary Authority (HKMA) Chief Executive Norman Chan visited Shenzhen-based financial service group Ping An Technology, one of the first Chinese financial institutions to join R3. During the visit, Chen mentioned distributed ledger technology as one of the key components to the “development and application of fintech,” and highlighted that he and Xing Yujing, the head of the People’s Bank of China Shenzhen Central Sub-Branch, agreed that mainland China should reinforce a solid relationship with the Hong Kong and Shenzhen financial sectors by engaging in “pilot schemes” in order to support “the process of the nation’s reform and opening-up.”