China expands pilot of fintech regulation to more areas

BEIJING -- China's central bank said Monday that it will expand its pilot program of regulations on fintech innovation to six more localities, as the country moves to further explore on an inclusive, prudent and flexible trial-and-error mechanism for such innovation.

The People's Bank of China (PBOC) will support the pilot program, first launched in Beijing in December, to expand to the municipalities of Shanghai and Chongqing, cities of Shenzhen, Hangzhou and Suzhou, as well as the Xiongan New Area.

The pilot will guide licensed financial institutions and technology companies in these areas to explore the use of information technologies in supporting small firms with funding difficulties and facilitating inclusive financing, it said.

According to a plan on fintech development released by the PBOC in August, China aims to construct the framework of fintech development, further boost applications and realize the deep integration and coordinated development of technology and finance by 2021.

The plan highlights risk-prevention in the application of fintech, calling for control of cyber risks and protection of financial information.