Wait-and-See or Whack-a-Mole

What Is the Best Way to Regulate Fintech in China

Bibliographic Data

ID3793316
AuthorsDuoqi Xu, C John Taylor, Yuanda Ren
Year2023
Volume10
Issue3
Pages433-462
Publication date2023-10-01
Open AccessYes
TypeARTICLE
VenueAsian Journal of Law and Society (JOURNAL)
Journal identifiersISSN: 2052-9015 • E-ISSN: 2052-9023
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/als.2022.7
OpenAlexW4280608045
LanguageEN
Citations received2
References cited10

Chinese fintech, initially taking the form as "Internet finance," is growing rapidly and poses great challenges to its financial regulatory authorities. Acclaimed as a new financial innovation, Internet finance was once accepted and even welcomed by the normally conservative Chinese financial regulators, who simultaneously adopted a wait-and-see strategy, to encourage such innovation and avoid overwhelming regulation. The benevolent regulation stance, however, bred rampant Ponzi schemes or fake financial innovation, resulting in tremendous monetary losses among lots of investors. To show a quick and active response, the central government popped into a whack-a-mole game, starting a four-year campaign of strict Internet finance regulation that has even cracked down on all the P2P lending platforms. This article analyzes the regulatory policy updates of Chinese Internet finance that is transforming to certain kinds of lawful fintech with difficulties, and that adaptive regulatory-organization restructure, regulatory-system optimization, and regulatory-model innovation would be more effective and constructive regulatory options

Business · China · Constructive · Economics · Financial innovation · Financial regulation · Government (linguistics · Political science · Restructuring · The Internet · Banking stability, regulation, efficiency · Computer Science · FinTech, Crowdfunding, Digital Finance · Housing, Finance, and Neoliberalism · Finance · Law

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