China to limit fintech to ‘real’ economy
Written by Mark Evans
China will only support financial technologies that benefit the ‘real’ economy, the China Securities Regulatory Commission has said.
Jiang Yang, vice chairman of the Commission, said in a speech that fintech should support the wider economy, instead of profiting only "a small group of people" in what has been seen as a reference to technologies such as crypto-currencies.
ICOs (initial coin offerings) have already been banned by state banks, and there has been a stop placed on virtual currency trading. Peer-to-peer lending and crowdfunding are also in line for state intervention.
Instability in the markets, trading inequalities and security issues have all played on Chinese regulators’ minds, as well as the relative immaturity of Chinese investors.