With continued government emphasis and rising share-buying interest, digital finance is expected to see substantial progress in China, which will translate into more impetus for the country's real economy, said experts.
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| A visitor interacts with a customer service robot during a financial expo in Beijing. (DU JIANPO/FOR CHINA DAILY) |
Their comments were made after a new development action plan to promote the high-quality development of digital finance was released late Wednesday.
The new action plan, which was jointly released by the People's Bank of China — the country's central bank — and six other departments including the country's top economic regulator, the National Development and Reform Commission, said that a financial system highly adaptive to the development of the digital economy should be established by the end of 2027.
Efforts will be made to systematically advance the digital transformation of financial institutions. Their data governance and data quality control mechanisms should be completed. Research and application of cutting-edge technologies such as robotic process automation should be conducted.
Data is the core element for digital finance while integrated applications of various digital technologies serve as the major driving force of the development of digital finance, said experts from China Securities. Digital finance should adapt to the development of the digital economy in an all-round way by digitalizing financial services, they said.
The latest action plan also underscored the importance of using digital technologies to improve the quality and efficiency of financial services rendered in key sectors. By using big data and smart algorithm models, green finance, inclusive finance and financial services targeting eldercare should seek substantial development.
The industrial internet and artificial intelligence should also be better used to facilitate industrial transformation, trade and the development of small and medium-sized enterprises, said the action plan.
On top of that, the foundation of digital finance should be further consolidated. In this sense, a highly efficient and safe payment environment is crucial, to which the development of digital yuan will help to attain the goal.
Dong Ximiao, chief researcher at Merchants Union Consumer Finance Co Ltd, said the latest action plan will help accelerate the digital transformation of financial institutions. By promoting integration between digital technologies and the real economy, the efficiency and quality of the services provided by financial institutions can be largely improved.
Dong said China's digital finance will embrace high-quality development, which is especially noticeable after the COVID-19 pandemic. The leapfrogging development of China's digital economy, fundamental change in user needs, ongoing technology innovation and the completion of its infrastructure are the four major drivers of digital finance.
A number of supportive policies for digital finance have been rolled out over the past few years.
In late 2021, the PBOC released its fintech development plan for 2022-25, underlining the principles of digitalization, people-oriented operations, green and low-carbon development models, fairness and inclusiveness. The former China Banking and Insurance Regulatory Commission, now the National Financial Regulatory Administration, said in a guideline issued in January 2022 that banking and insurance industries should advance the digitalization of their businesses and actively develop digital finance.
According to market tracker Wind Info, there are 28 A-share companies with businesses related to digital finance, among which 13 have been researched by investment institutions so far this year. Following an average 3.19 percent share price increase on Wednesday, these digital finance-related companies saw their prices finish up 0.34 percent on Thursday, while the benchmark Shanghai Composite Index slid 0.43 percent.
