Arising from Advances in Technology

Internet finance is growing rapidly in China, with the scale and penetration of the sector drawing attention to China as an emerging leader in FinTech. At the same time, there are increasing concerns regarding consumer protection and maintaining the stability of the financial system, revealing the need to strike the right balance between controlling risk and promoting innovation. As advances in technology lead to the development of new financial services, finding methods for effectively supervising and regulating these services has become a global issue. The Chinese government can gain valuable insight into how to ensure the sound development of the Internet finance industry by observing the results of efforts being made in other countries. This report summarizes the current trends in Internet finance in China and the related government policies, then reviews some of the experiences of other countries, including Japan, and lastly provides recommendations based on these observations.