IDEAS home Printed from https://ideas.repec.org/a/bla/asiapr/v17y2022i2p274-292.html

Chinese Fintech Innovation and Regulation

Author

Listed:
  • Martin Chorzempa
  • Yiping Huang

Abstract

Nowhere has financial technology or “fintech” become larger or as transformative as in China. Fintech, largely developed by technology companies, rapidly turned China from a largely cash‐based, backward financial system to a fintech leader globally. At the same time, China's government created an environment conducive to innovation. China's experience with fintech is a rich repository of lessons for other countries aiming to modernize their financial service industries and “leapfrog” up to advanced economies in some respects. It shows how clever reforms can overcome the lack of competition for financial incumbents, but also the mechanisms necessary to ensure regulation and supervision are sufficient for the risks of financial innovation. Finally, policy debates and solutions in China around the power of big tech, including in finance, have relevance to a world increasingly forced to grapple with these issues.

Suggested Citation

  • Martin Chorzempa & Yiping Huang, 2022. "Chinese Fintech Innovation and Regulation," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 274-292, July.
    • Handle: RePEc:bla:asiapr:v:17:y:2022:i:2:p:274-292
    DOI: 10.1111/aepr.12384
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/aepr.12384
    Download Restriction: no
    File URL: https://libkey.io/10.1111/aepr.12384?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yiping Huang & Xun Wang, 2011. "Does Financial Repression Inhibit or Facilitate Economic Growth? A Case Study of Chinese Reform Experience," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73, pages 833-855, December.
    2. Gambacorta, Leonardo & Huang, Yiping & Qiu, Han & Wang, Jingyi, 2024. "How do machine learning and non-traditional data affect credit scoring? New evidence from a Chinese fintech firm," Journal of Financial Stability, Elsevier, vol. 73(C).
    3. Harald Hau & Yi Huang & Hongzhe Shan & Zixia Sheng, 2021. "FinTech Credit and Entrepreneurial Growth," Swiss Finance Institute Research Paper Series 21-47, Swiss Finance Institute.
    4. Erik Feyen & Jon Frost & Leonardo Gambacorta & Harish Natarajan & Matthew Saal, 2021. "Fintech and the digital transformation of financial services: implications for market structure and public policy," BIS Papers, Bank for International Settlements, number 117.
    5. Xiuping Hua & Yiping Huang, 2021. "Understanding China’s fintech sector: development, impacts and risks," The European Journal of Finance, Taylor & Francis Journals, vol. 27(4-5), pages 321-333, March.
    6. Jon Frost & Leonardo Gambacorta & Yi Huang & Hyun Song Shin & Pablo Zbinden, 2019. "BigTech and the changing structure of financial intermediation," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(100), pages 761-799.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xin Li & Kai-Hua Wang, 2026. "Does investment in fintech assets enhance performance in China’s financial sector? Evidence from multiple investment strategies," Electronic Commerce Research, Springer, vol. 26(2), pages 1489-1528, April.
    2. Chen, Wen & Wu, Weili & Zhang, Tonghui, 2023. "Fintech development, firm digitalization, and bank loan pricing," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    3. Osakwe, Christian Nedu & Ogunmokun, Oluwatobi A. & Elgammal, Islam & Kwarteng, Michael Adu, 2025. "Individuals' attitudes and their adoption intentions of central bank digital currency: Combining theories and analytics for deeper insights," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    4. Koranteng, Barbara & You, Kefei, 2024. "Fintech and financial stability: Evidence from spatial analysis for 25 countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 93(C).
    5. Razzaq, Asif & Sharif, Arshian & Ozturk, Ilhan & Skare, Marinko, 2023. "Asymmetric influence of digital finance, and renewable energy technology innovation on green growth in China," Renewable Energy, Elsevier, vol. 202(C), pages 310-319.
    6. Vuković, Darko B. & Hassan, M. Kabir & Kwakye, Bernard & Febtinugraini, Armike & Shakib, Mohammed, 2024. "Does fintech matter for financial inclusion and financial stability in BRICS markets?," Emerging Markets Review, Elsevier, vol. 61(C).
    7. Wu, WenTing & Chen, XiaoQian & Zvarych, Roman & Huang, WeiLun, 2024. "The Stackelberg duel between Central Bank Digital Currencies and private payment titans in China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    8. Yang, Tongbin & Zhou, Bo, 2024. "Local FinTech development, industrial structure, and north-south economic disparity in China," International Review of Financial Analysis, Elsevier, vol. 93(C).
    9. Cheng, Zhiming & Smyth, Russell & Zhang, Le, 2024. "Does childhood adversity affect household portfolio decisions? Evidence from the Chinese Great Famine," China Economic Review, Elsevier, vol. 87(C).
    10. Yingkai Yin & Hongxin Ma & Zhenni Wu & Aobo Yue, 2023. "How Does China Build Its Fintech Strategy? A Perspective of Policy Evolution," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    11. Pan, Martin & Li, Daozheng & Wu, Hanrui & Lei, Pengfei, 2024. "Technological revolution and regulatory innovation: How governmental artificial intelligence adoption matters for financial regulation intensity," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    12. Rudra P. Pradhan & Mahendhiran S. Nair & Mak B. Arvin & John H. Hall, 2023. "Institutional quality, financial development and sustainable economic growth among lower income countries," Natural Resources Forum, Blackwell Publishing, vol. 47(3), pages 435-483, August.
    13. Hongjie Cao & Kexin Shen & Qifan Chen & Wen Wen, 2024. "Impact of Broadband China Infrastructure Strategy on Fintech: A Quasi-Natural Experiment," Sustainability, MDPI, vol. 16(4), pages 1-20, February.
    14. Ahmed Razman Latiff & Mohammad Zakaria Alqudah & Husni Samara & Naji Alslaibi, 2025. "Empowering the financial sector: the role of fintech research development trends," Future Business Journal, Springer, vol. 11(1), pages 1-22, December.
    15. Zhu, Pengyu & Wang, Zining & Singh, Renu & Tan, Xinying, 2026. "China's model of technology leapfrog: A case study of electric vehicle policies and the development of green technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 226(PD).
    16. Yiping Huang & Takatoshi Ito & Kazumasa Iwata & Colin McKenzie & Shujiro Urata, 2022. "Digital Finance in Asia: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 163-182, July.
    17. Qian Liu & Yiheng You, 2023. "FinTech and Green Credit Development—Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-23, March.
    18. Anusha Rajan & Bharadhwaj Sivakumaran & Lalita Mohan Mohapatra, 2026. "Exploring the Role of FinTech in Sustainable Financial Services: Literature Review and Future Research Agenda," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 3293-3336, April.
    19. Huang, Rui & Quan, Lei & Luo, Haotian & Gao, Ziwei & Lai, Xiaobing & Tang, Song, 2024. "Can FinTech promote enterprise cross-region investment? ——Evidence from China," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    20. Zhiyong Zheng & Jian He & Yingjie Yang & Mengting Zhang & Desheng Wu & Yang Bian & Jianhong Cao, 2023. "Does financial leverage volatility induce systemic financial risk? Empirical insight based on the Chinese fintech sector," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1142-1161, March.
    21. Lai, Xiaobing & Yue, Shujing & Guo, Chong & Zhang, Xinhe, 2023. "Does FinTech reduce corporate excess leverage? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 281-299.
    22. Rui Ai & Yuhang Zheng & Serhat Yüksel & Hasan Dinçer, 2023. "Investigating the components of fintech ecosystem for distributed energy investments with an integrated quantum spherical decision support system," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-28, December.
    23. Liu Renzhong & Poh-Chuin Teo, 2026. "Managing Fintech Internationalization through Innovative Service Models: A Contextual Organizational Diagnosis of HFG in the Malaysian Market," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(1), pages 1190-1194, January.
    24. Yuying Gao & Shanyue Jin, 2022. "Corporate Nature, Financial Technology, and Corporate Innovation in China," Sustainability, MDPI, vol. 14(12), pages 1-22, June.
    25. Nguyen, Xuan Minh Thuy & Wang, Ying & Acheampong, Albert, 2025. "The mediating effect of institutional governance on banking depth and economic performance," The Quarterly Review of Economics and Finance, Elsevier, vol. 104(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Hong & Wang, Yuejing & Wang, Xiaoquan, 2024. "The impact of financial deepening on agricultural production: A household-level analysis of BigTech finance," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 57-77.
    2. Huang, Yiping & Li, Zhenhua & Qiu, Han & Tao, Sun & Wang, Xue & Zhang, Longmei, 2023. "BigTech credit risk assessment for SMEs," China Economic Review, Elsevier, vol. 81(C).
    3. Tobias Berg & Andreas Fuster & Manju Puri, 2022. "FinTech Lending," Annual Review of Financial Economics, Annual Reviews, vol. 14(1), pages 187-207, November.
    4. Allen, Franklin & Gu, Xian & Jagtiani, Julapa, 2022. "Fintech, Cryptocurrencies, and CBDC: Financial Structural Transformation in China," Journal of International Money and Finance, Elsevier, vol. 124(C).
    5. Wang, Yichen & Hu, Jun & Chen, Jia, 2023. "Does Fintech facilitate cross-border M&As? Evidence from Chinese A-share listed firms," International Review of Financial Analysis, Elsevier, vol. 85(C).
    6. Ye Guo & Xiaoying Liu & Mingming Zhang, 2025. "From advantage to disadvantage: how FinTech impacts small banks?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-33, December.
    7. Cornelli, Giulio & Frost, Jon & Gambacorta, Leonardo & Jagtiani, Julapa, 2024. "The impact of fintech lending on credit access for U.S. small businesses," Journal of Financial Stability, Elsevier, vol. 73(C).
    8. Rishabh, Kumar & Schäublin, Jorma, 2021. "Payment Fintechs and Debt Enforcement," Working papers 2021/02, Faculty of Business and Economics - University of Basel.
    9. Kun Wang & Bozhou Li & Lu Qiao & Zhiyi Xia, 2026. "Fintech and Dividend Payouts: Evidence From China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 2964-2979, April.
    10. Cecchetti, Stephen & Schoenholtz, Kermit L., 2021. "Finance and technology: What is changing and what is not," CEPR Press Book Chapters, in: Beck, Thorsten & Park, Yung Chul (ed.), Fostering FinTech for financial transformation: The case of South Korea, edition 1, volume 1, chapter 1, Centre for Economic Policy Research.
    11. Huang, Yiping & Li, Xiang & Qiu, Han & Yu, Changhua, 2023. "BigTech credit and monetary policy transmission: Micro-level evidence from China," BOFIT Discussion Papers 2/2023, Bank of Finland Institute for Emerging Economies (BOFIT).
    12. Kowalewski, Oskar & Pisany, Paweł, 2022. "Banks' consumer lending reaction to fintech and bigtech credit emergence in the context of soft versus hard credit information processing," International Review of Financial Analysis, Elsevier, vol. 81(C).
    13. Kowalewski, Oskar & Pisany, Paweł & Ślązak, Emil, 2022. "Digitalization and data, institutional quality and culture as drivers of technology-based credit providers," Journal of Economics and Business, Elsevier, vol. 121(C).
    14. Giulio Cornelli & Jon Frost & Leonardo Gambacorta & Raghavendra Rau & Robert Wardrop & Tania Ziegler, 2020. "Fintech and big tech credit: a new database," BIS Working Papers 887, Bank for International Settlements.
    15. Wang, Xiaoting & Hou, Siyuan & Kyaw, Khine & Xue, Xupeng & Liu, Xueqin, 2023. "Exploring the determinants of Fintech Credit: A comprehensive analysis," Economic Modelling, Elsevier, vol. 126(C).
    16. Nicola Branzoli & Ilaria Supino, 2020. "FinTech credit: a critical review of empirical research," Questioni di Economia e Finanza (Occasional Papers) 549, Bank of Italy, Economic Research and International Relations Area.
    17. Leonardo Gambacorta & Yiping Huang & Zhenhua Li & Han Qiu & Shu Chen, 2023. "Data versus Collateral," Review of Finance, European Finance Association, vol. 27(2), pages 369-398.
    18. Branzoli, Nicola & Rainone, Edoardo & Supino, Ilaria, 2024. "The role of banks’ technology adoption in credit markets during the pandemic," Journal of Financial Stability, Elsevier, vol. 71(C).
    19. Hanhua Shao & Jixin Cheng & Yuansheng Wang & Xiaoming Li, 2022. "Can Digital Finance Promote Comprehensive Carbon Emission Performance? Evidence from Chinese Cities," IJERPH, MDPI, vol. 19(16), pages 1-18, August.
    20. Julio R. Hernáez & Alejandra Bernad & Laura Hierro & Ana M. Gómez-Bezares, 2022. "Reflections on the future business model of European banks and the supervisory approach," Financial Stability Review, Banco de España, issue Spring.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiapr:v:17:y:2022:i:2:p:274-292. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jcerrjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.