The China Securities Regulatory Commission (CSRC) and the Australian Securities and Investment Commission (ASIC) have signed a Financial Technology (fintech) cooperation agreement to advance innovation with each countries’ markets. Under the deal, the two regulators will share and utilize information on emerging market trends and developments to promote fintech innovations.
According to CSRC chairperson Shiyu Liu, the various developments in the fintech sector have offered several opportunities for the introduction of new financial services and fulfill the needs of investors.
“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.”
Importance of the alliance between the countries
The partnership is expected to benefit both China and Australia as both countries are also major trading partners. In 2016, China is Australia’s largest two-way trading partner in goods and services in a market worth $155.2 bln. China is also Australia’s single biggest market for both exports and imports.
Moreover, ASIC claimed that China is the largest market for fintech investments around the world. The China-based major retail payments platforms Alipay and WeChat Pay have an estimated 1.1 bln combined platform users. Investments in fintech projects in China also totaled more than $10 bln in 2016.
In his comment on the partnership, ASIC chairperson Greg Medcraft said that the collaboration is a great opportunity for both countries to learn more about the fintech sector.
“This Agreement represents an exciting opportunity for us to learn more about the Chinese fintech sector, which is renowned for its success and dynamism. We also look forward to sharing our insights and experiences on regtech with the CSRC.”
“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.”