Sizable fintech companies should face the same regulator scrutiny as banks according to China’s Central Bank; this follows what the PBOC said in August, that internet finance companies should be included in the Macro Prudential Assessment framework which was designed for banks; having banks and fintech companies operate under the same rules could streamline regulation. Source.
China’s central bank said they will open up the electronic payments market to foreign companies for the first time; international firms will be required to set up local units, establish infrastructure within China, and store client information within the country; China is one of the biggest and most competitive payments markets in the world; there are currently more than 260 companies with payments licenses and they processed more than $26tn in volume in 2017. Source.
China’s central bank announced new regulations to curb risk in the asset management space; the new rules are an attempt to unify regulatory areas, prohibit asset managers from guaranteeing returns and have them set aside 10 percent for provisioning; “The central bank is trying to thread a very fine needle,” said Andrew Polk at Trivium China, a Beijing consultancy. Source.