China Releases Draft Version of “Online Micro-loan Operations Provisional Administrative Measures”
On November 2nd, the People’s Bank of China (PBC) and the China Banking and Insurance Regulatory Commission (CBIRC) jointly released the draft version of “Online Micro-loan Operations Provisional Administrative Measures” (hereinafter referred to as the “Measures”) for public consultation.
The Measures include:
1) Clarify that the online microfinance business of microfinance companies should be mainly carried out in the provincial administrative area of the place of registration; without the approval of the banking regulatory agency of the State Council, microfinance companies are not allowed to conduct online microfinance across provincial administrative regions.
2) Make provisions on controlling shareholders, Internet platforms, and registered capital. In terms of registered capital, the registered capital of companies operating online small loan business is not less than RMB 1 billion, and it is a one-time paid-in monetary capital. The registered capital of companies operating across provincial administrative regions is not less than RMB 5 billion and is a one-time paid-in monetary capital.
3) Clarify the loan amount and purpose. In terms of the loan amount, it is required that online microloans for natural persons shall not exceed RMB 300,000, and shall not exceed one-third of his/her average annual income in the last 3 years. The lower of the two amounts is the maximum loan amount. The balance of single-account online small loans to legal persons or other organizations and their related parties shall not exceed RMB 1 million. In terms of loan use, it was emphasized that online microloans must not be used for investment in bonds, stocks, financial derivatives, asset management products, etc., as well as house purchases and repayment of mortgage loans.
Beijing Will Accelerate the Application of Blockchain in Food Safety Supervision
All 16 districts in Beijing have reached the standards for creating “Food Safety Demonstration Zones”. The first plenary meeting of the Beijing Municipal Food and Drug Safety Commission pointed out that Beijing would strengthen the safety supervision of the supply chain and traceability management by accelerating the application of big data, cloud computing, blockchain and other technologies. (Source: BJNEWS.COM)
The People’s Bank of China Discusses Global Fintech Development and Regulation in Financial Stability Report 2020
On November 6th, the People’s Bank of China (PBC) officially released the “China Financial Stability Report (2020)” (hereinafter referred to as the “Report”), which provided a comprehensive assessment of the soundness of China’s financial system since 2019. In the Report was a thorough analysis of the global and China’s Fintech development, including financing, CBDC, open banking, digital banking, regulatory technology, etc. (Source: PBC)
China’s First Insurance Technology Innovation Alliance Established in Beijing
On November 9th, China’s first insurance technology innovation (Insurtech) alliance was established in Beijing at an insurtech-themed conference held by PICC Financial Services. The alliance consisted of 10 angel investment funds, 20 universities and incubation & acceleration agencies, 30 leading insurance companies, and 100 science and technology companies.
At the same time, experts from regulatory agencies, the insurance industry, the technology industry will join the advisory committee of the alliance, offering guidance and professional advice for the alliance’s system construction and operation. In addition, the alliance will also organize online and offline insurtech innovation courses, annual industry summits, insurtech-themed salons, incubation camps, startups roadshows, data verification sandboxes, and other activities. (Source: China Daily)
The above is a weekly synopsis of the biggest stories on Fintech in China provided by WeiyangX, part of Tsinghua University, in partnership with Crowdfund Insider.
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