China to Trial 11 New Fintech Projects in ‘Regulatory Sandbox’
What’s new: China’s central bank has announced the second batch (link in Chinese) of fintech projects to be included in a pilot program for trialing new regulations in the capital Beijing that aims to encourage innovation in the financial technology industry.
The pilot program for the “regulatory sandbox” was first launched in Beijing in December, and the first batch (link in Chinese) of six projects were announced in January. A regulatory sandbox allows innovation to take place in a separate environment from the wider financial system in a bid to reduce risks.
In the second batch, the central bank is set to introduce 11 new projects in businesses such as banking, insurance and online payments.
What’s the background: The projects in the pilot program form part of a three-year plan for fintech development that China launched in August.
In addition to Beijing, the regulatory sandbox initiative has been expanded to the cities of Shanghai, Chongqing, Shenzhen, Hangzhou and Suzhou, as well as to the Xiongan New Area near the Chinese capital, the People’s Bank of China announced in April.
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