Understanding China’s fintech sector: development, impacts and risks
Financial technology (fintech) is rapidly transforming the economy as well as the financial landscape in China. This paper attempts to shed light on its contributing factors, current state, economic impacts and potential risks. We identify three key drivers for China’s fintech development, namely sh...
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| Format: | Article |
| Language: | English |
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2020
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| Online Access: | https://eprints.nottingham.ac.uk/63064/ |
| _version_ | 1848799992287854592 |
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| author | Hua, Xiuping Huang, Yiping |
| author_facet | Hua, Xiuping Huang, Yiping |
| author_sort | Hua, Xiuping |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Financial technology (fintech) is rapidly transforming the economy as well as the financial landscape in China. This paper attempts to shed light on its contributing factors, current state, economic impacts and potential risks. We identify three key drivers for China’s fintech development, namely shortage of supply in formal financial market, strong government support for promoting financial inclusion through digital technology, and more ‘tolerant’ regulatory environment. The greatest value of the Chinese fintech sector is promotion of financial inclusion, enabling a vast number of small- and medium-sized enterprises (SMEs) and low-income households to access to financial services. Existing studies unveil some strong evidences of fintech development improving efficiency, increasing employment and supporting entrepreneurship. In the meantime, there are also serious challenges facing this sector, such as regulatory uncertainties, illegal transactions, data abuse, etc. We conclude the paper by presenting some key takeaways, including several lessons for financial regulation. |
| first_indexed | 2025-11-14T20:44:28Z |
| format | Article |
| id | nottingham-63064 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:44:28Z |
| publishDate | 2020 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-630642020-09-17T04:00:49Z https://eprints.nottingham.ac.uk/63064/ Understanding China’s fintech sector: development, impacts and risks Hua, Xiuping Huang, Yiping Financial technology (fintech) is rapidly transforming the economy as well as the financial landscape in China. This paper attempts to shed light on its contributing factors, current state, economic impacts and potential risks. We identify three key drivers for China’s fintech development, namely shortage of supply in formal financial market, strong government support for promoting financial inclusion through digital technology, and more ‘tolerant’ regulatory environment. The greatest value of the Chinese fintech sector is promotion of financial inclusion, enabling a vast number of small- and medium-sized enterprises (SMEs) and low-income households to access to financial services. Existing studies unveil some strong evidences of fintech development improving efficiency, increasing employment and supporting entrepreneurship. In the meantime, there are also serious challenges facing this sector, such as regulatory uncertainties, illegal transactions, data abuse, etc. We conclude the paper by presenting some key takeaways, including several lessons for financial regulation. 2020-08-27 Article PeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/63064/1/Xiuping%20Hua.pdf Hua, Xiuping and Huang, Yiping (2020) Understanding China’s fintech sector: development, impacts and risks. The European Journal of Finance . pp. 1-13. ISSN 1351-847X Financial technology financial inclusion financial stability China http://dx.doi.org/10.1080/1351847X.2020.1811131 doi:10.1080/1351847X.2020.1811131 doi:10.1080/1351847X.2020.1811131 |
| spellingShingle | Financial technology financial inclusion financial stability China Hua, Xiuping Huang, Yiping Understanding China’s fintech sector: development, impacts and risks |
| title | Understanding China’s fintech sector: development, impacts and risks |
| title_full | Understanding China’s fintech sector: development, impacts and risks |
| title_fullStr | Understanding China’s fintech sector: development, impacts and risks |
| title_full_unstemmed | Understanding China’s fintech sector: development, impacts and risks |
| title_short | Understanding China’s fintech sector: development, impacts and risks |
| title_sort | understanding china’s fintech sector: development, impacts and risks |
| topic | Financial technology financial inclusion financial stability China |
| url | https://eprints.nottingham.ac.uk/63064/ https://eprints.nottingham.ac.uk/63064/ https://eprints.nottingham.ac.uk/63064/ |