China’s government is cracking down on fintech. What does it want?
The state is seeking to position itself at the heart of the industry
FINANCIAL TECHNOLOGIES “cause turmoil when loosed” yet “perish once regulated”, a deputy governor of China’s central bank observed last year. This is an apt description of the dilemma facing the country’s regulators. Innovation has swept its financial markets over the past decade. It has produced some of the world’s most valuable technology companies, such as Ant Group, and in some cases, such as peer-to-peer (P2P) lending, led to fraud and losses. Regulators have fintech in their sights. But what is it they hope to achieve?
This article appeared in the Finance & economics section of the print edition under the headline “Mood swing”
Finance & economics March 13th 2021
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