Eight Fintech Projects to Be Trialed in Shanghai ‘Regulatory Sandbox’
What’s new: The first batch of eight fintech projects have been named for a pilot program in Shanghai designed to trial new regulations aimed at encouraging innovation in the financial technology sector, the Shanghai Head Office of China’s central bank announced (link in Chinese) Tuesday, as part of the country’s three-year plan for fintech development.
The program, also known as a “regulatory sandbox,” allows fintech innovation to take place in a smaller environment separate from the wider financial system in an effort to control risks.
The eight projects selected for trial in Shanghai involve 13 institutions, including commercial banks and tech companies. Some of the projects are aimed at providing financial services to small and micro companies.
What’s the background: The regulatory sandbox initiative was first launched in Beijing in December, and it has since been extended to the cities of Shanghai, Chongqing, Shenzhen, Hangzhou, Suzhou, Guangzhou and Chengdu, as well as the Xiongan New Area, a new economic zone near the country’s capital.
Including the first two batches of projects in Beijing’s regulatory sandbox, 25 fintech projects have now been announced for the program.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.
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