China and Australia have signed an agreement that will see the two countries share information on their respective fintech markets.
The China Securities Regulatory Commission (CSRC) and Australian Securities and Investments Commission (ASIC) will promote innovation in financial services in their countries, this after EY revealed that Australia’s fintech revenues had jumped by 208% within the space of a year.
The agreement will also see the two organisations collaborate on ‘regtech’, technology designed to ease the processes involved with financial compliance and following regulations.
China is Australia's largest two-way trading partner in goods and services, valued at AU$155.2bn in 2016, up 3.7% on the previous year. China is also the country’s largest export market ($93bn in 2016) and our largest source of imports ($62.1bn in 2016).
Shiyu Liu, CSRC Chairman, said: “In the past few years, the rapid development of fintech has created ample opportunities to introduce new financial services, enhance financial inclusion and fulfill investors’ needs. However, financial market regulators around the globe also face new requirements and challenges posed by market innovations.
“The Agreement between CSRC and ASIC will provide an effective channel for timely exchange of information on fintech developments and regulatory issues, and enhance regulatory cooperation between the two authorities.”
China is a world leader in fintech investment, development and adoption, particularly in customer-facing areas like payments and lending. In 2016, total investment in Chinese fintech ventures is estimated to have been AU$13bn.